31 January 2017
GB00B0W5NJ22
Ecovista PLC
("Ecovista" or "the Company")
Audited Annual Results for the year ended 31 August 2016
Ecovista Plc, are delighted to report its audited annual results for the twelve months ended 31 August 2016.
Chairman's statement
I am pleased to present to you the financial statements for the shortened period to 31 August 2016.
Overview
The accounts for the 8 month period to 31 August 2016 showed a loss of £216,536, comparable to the loss for the 12 months ended 31 December 2015 of £115,871.
During the financial period, we have raised £1.06m in equity, showing the strong commitment of our investor group. This has strengthened our balance sheet and helped the completion of the property investments we targeted for this period increasing the NAV of the company to £1,756,561 for the period to 31 August 2016.
Currently we still have £200,000 Convertible loan notes outstanding which are due for repayment on 29 June 2018.
The board remains committed to continue to keep a tight rein on costs and low levels of leveraging.
Current operations
Cignella S.r.l.
The Cignella Estate (Cignella -- http://www.cignella.com/en/) is a Tuscany based holiday resort powered by state of the art Geo Thermic Systems. The resort is in southern Tuscany approximately 35 minutes south of Siena. The resort comprises 18 houses and apartments, of which 13 are currently let via web based and local holiday companies to tourists mostly from the UK and Germany. The remaining 5 properties are townhouses which are yet to be completed.
At present Ecovista owns 15% of the shares in Cignella SRL and has an option to buy the balance of the equity for €4m.
Cignella provides a high-end product offering and we believe this is the optimum space in this market. The current price point is attractive in comparison to local competition, while the quality of the product is above expectations of the typical tourist and is relatively easy to deliver.
Willow Cottages and Willside Ltd
Through our 100% owned subsidiaries we currently own two development opportunities; a cottage which has been rented out on an assured short tenancy and a car park site next to Stansted Airport. The group is pursuing a planning appeal for the cark park site and has just accepted an offer, subject to contract, for the cottage of £275,000.
100 Rye Street Ltd
In March 2016, the group purchased a large house in Bishops Stortford for £665,000 paid in cash. Planning has subsequently been granted to replace the existing building with a 4,500sq ft. property with an anticipated gross value of £1,350,000. Demolition of the existing building is complete and construction of the new building is expected to start in early spring 2017.
Outlook
The Group has continuous deal flow and is currently looking at a number of potential development sites in and around the London, Essex and Hertfordshire area.
The Group has numerous contacts with agents, developers, and interior designers. With the help of these experts in these types of projects we believe there is sustainable growth in this sector.
The Group's mode of operation is to buy property with potential for planning, obtain planning, then working with established local developers build out the project to maximise revenue.
Director Change
I would like to take opportunity to thank Mr Luca Tenuta for his service to the company and the board wish him all success in his future endeavours. The Company will be looking to strength the board in the near future.
Louise Stokely
Director
31 January 2017
Consolidated Income statement
For the period ended 31 August 2016
| Unaudited | |||
| Period to | Year to | ||
| August 2016 | December 2015 | ||
| Notes | £ | £ | |
| TURNOVER | 5 | 5,142 | 2,400 |
| Cost of sales | - | - | |
| Gross profit | 5,142 | 2,400 | |
| Administrative expenses | (222,445) | (94,501) | |
| Operating loss | 6 | (217,303) | (92,101) |
| Financial income | 12 | 7,411 | - |
| Financial expense | 15 | (6,645) | (23,770) |
| Loss before tax | (216,536) | (115,871) | |
| Taxation | 7 | - | (254) |
| Loss for the period | (216,536) | (116,125) | |
| Earnings per share attributable to owners of the parent company | |||
| Basic loss per share (pence) | 8 | (0.006p) | (0.011p) |
There are no items of other comprehensive income.
The Company has elected to take the exemption under section 408 of the Companies Act 2006 not to present the Parent Company income statement. The loss for the Parent Company for the year was £188,197 (2015: £115,639).
Consolidated Statement of financial position
at 31 August 2016
| Group | Company | |||||
| Unaudited | restated | |||||
| August 2016 | December 2015 | August 2016 | December 2015 | |||
| Notes | £ | £ | £ | £ | ||
| Fixed assets | ||||||
| Goodwill | 9 | 1,745 | 1,745 | - | - | |
| Investment properties | 10 | 1,165,000 | 500,000 | - | - | |
| Investments in subsidiaries | 11 | - | - | 269,942 | 269,941 | |
| Investments | 12 | 760,794 | 751,230 | 760,794 | 751,230 | |
| 1,927,539 | 1,252,975 | 1,030,736 | 1,021,171 | |||
| Current assets | ||||||
| Debtors | 13 | 72,124 | 40,535 | 931,308 | 267,930 | |
| Cash at bank and in hand | 31,822 | 84,640 | 30,949 | 84,604 | ||
| 103,946 | 125,175 | 962,257 | 352,534 | |||
| Creditors: amounts falling due within one year | 14 | (119,104) | (38,278) | (51,787) | (33,347) | |
| Net current assets | (15,158) | 86,897 | 910,470 | 319,187 | ||
| Total assets less current liabilities | 1,912,381 | 1,339,872 | 1,941,206 | 1,340,358 | ||
| Creditors: amounts falling due after more than one year | 15 | (184,645) | (178,000) | (184,645) | (178,000) | |
| 1,727,736 | 1,161,872 | 1,756,561 | 1,162,358 | |||
| Capital and reserves | ||||||
| Called up share capital | 16 | 163,190 | 151,730 | 163,190 | 151,730 | |
| Share premium account | 2,343,045 | 1,572,105 | 2,343,045 | 1,572,105 | ||
| Equity reserve | 15 | 22,000 | 22,000 | 22,000 | 22,000 | |
| Profit and loss account | (800,499) | (583,963) | (771,674) | (583,477) | ||
| Shareholders Funds | 1,727,736 | 1,161,872 | 1,756,561 | 1,162,358 | ||
The financial statements were approved by the board of directors on 31 January 2017 and signed on its behalf.
Group statement of changes in equity
For the period ended 31 August 2016
| Unaudited | Unaudited | |||||
| Share capital | Share premium | Equity reserve | Unissued shares | Retained earnings | Total | |
| £ | £ | £ | £ | £ | £ | |
| 1 January 2015 | 134,030 | 568,261 | - | 75,958 | (467,838) | 310,411 |
| Total comprehensive income for the year | - | - | - | - | (124,123) | (124,123) |
| Issue of share capital | 17,700 | 1,003,844 | - | (75,958) | - | 945,586 |
| Issue of convertible loan | - | - | 22,000 | - | - | 22,000 |
| 1 January 2016 | 151,730 | 1,572,105 | 22,000 | - | (591,961) | 1,153,874 |
| Total comprehensive income for the period | - | - | - | - | (214,124) | (214,124) |
| Issue of share capital | 11,460 | 770,940 | - | - | - | 782,400 |
| 31 August 2016 | 163,190 | 2,343,045 | 22,000 | - | (806,085) | 1,722,150 |
Company statement of changes in equity
For the period ended 31 August 2016
| restated | ||||||
| Share capital | Share premium | Equity reserve | Unissued shares | Retained earnings | Total | |
| £ | £ | £ | £ | £ | £ | |
| 1 January 2015 | 134,030 | 568,261 | - | 75,958 | (467,838) | 310,411 |
| Total comprehensive income for the year | - | - | - | - | (91,869) | (91,869) |
| Issue of share capital | 17,700 | 1,003,844 | - | (75,958) | - | 945,586 |
| Issue of convertible loan | - | - | 22,000 | - | - | 22,000 |
| 1 January 2016 as previously stated | 151,730 | 1,572,105 | 22,000 | - | (559,707) | 1,186,128 |
| Restatement (Note 22) | - | - | - | - | (23,770) | (23,770) |
| 1 January 2016 -restated | 151,730 | 1,572,105 | 22,000 | - | (583,477) | 1,162,358 |
| Total comprehensive income for the period | - | - | - | - | (188,197) | (188,197) |
| Issue of share capital | 11,460 | 770,940 | - | - | - | 782,400 |
| 31 August 2016 | 163,190 | 2,343,045 | 22,000 | - | (771,674) | 1,756,561 |
Group and Company Statement of cash flows
For the period ended 31 August 2016
| Group | Company | ||||
| Unaudited | |||||
| August 2016 | December 2015 | August 2016 | December 2015 | ||
| £ | £ | £ | £ | ||
| Operating activities | |||||
| Loss for the year | (216,536) | (116,125) | (188,197) | (91,869) | |
| Financial income | (7,411) | - | (7,411) | - | |
| Finance cost | 6,645 | 23,770 | 6,645 | - | |
| Other movements | (2,153) | - | (2,153) | - | |
| Decrease / increase in debtors | 8,411 | (25,147) | 2,371 | (25,669) | |
| Increase in creditors | 27,806 | 15,130 | 12,690 | 15,130 | |
| Expenses settled in shares | 110,000 | - | 110,000 | - | |
| Net cash used in operating activities | (73,238) | (102,372) | (66,055) | (102,408) | |
| Investing activities | |||||
| Acquisition of subsidiaries (Note 11) | (665,000) | (375,000) | (1) | (144,941) | |
| Loans to subsidiaries | - | - | (619,999) | (230,059) | |
| Loans issued | (40,000) | (635,000) | (40,000) | (635,000) | |
| Net cash used in investing activities | (705,000) | (1,010,000) | (660,000) | (1,010,000) | |
| Financing activities | |||||
| Proceeds from issue of equity | 752,000 | 1,048,497 | 752,000 | 1,048,497 | |
| Share issue costs | (79,600) | (102,911) | (79,600) | (102,911) | |
| Proceed from loan notes issue | - | 200,000 | - | 200,000 | |
| Loan received | 53,200 | - | - | - | |
| Net cash generated by financing activities | 725,600 | 1,145,586 | 672,400 | 1,145,586 | |
| Net increase in cash and cash equivalents | (52,818) | 33,178 | (53,655) | 33,178 | |
| Cash and cash equivalents at the beginning of the period | 84,640 | 51,462 | 84,604 | 51,426 | |
| Cash and cash equivalents at the end of the period | 31,822 | 84,640 | 30,949 | 84,604 | |
The directors of Ecovista Plc accept responsibility for this announcement.
For further information please contact:
Louise Stokely
Tel: + 44 (0) 07702 576421
ISDX CORPORATE ADVISER:
Alexander David Securities Limited
David Scott -Corporate Finance
James Dewhurst - Corporate Brokerage
Telephone: +44 (0) 20 7448 9820
http://www.ad-securities.com
49 Queen Victoria Street, London EC4N 4SA