RNS Number : 2220P Mar City PLC 30 September 2011 MAR CITY PLC ('Mar City' or 'the Company') Interim Results for the six months ended 30 June 2011 Interim Statement Results The Board of Mar City announces the results for the six month period ended 30 June 2011. The Company produced a loss before taxation of £595,000 (period ended 30 June 2010: loss of £14,000, year ended 31 December 2010: loss of £106,000). The Company has net assets of £903,000 at the balance sheet date (30 June 2010: net assets of £228,000, 31 December 2010: net assets of £797,000). Income reported for the six month period to 30th June 2011 comprises fees earned by Mar City's Residential House Building Team ('RBT') for services provided to Mar City Developments Limited ('MDL') in connection with residential construction projects being completed by MDL. In line with the agreement between Mar City and MDL, the fees are set at market levels and produce a satisfactory profit for the Company. Strategy and New Contract Update As Shareholders will be aware, the Company is actively pursuing residential construction opportunities, primarily in the Affordable Housing Sector. As part of this new strategy, the Company completed the transfer of the RBT from MDL in December 2010. I am now pleased to announce that we have signed a significant new contract for the construction of more than 100 dwellings in the West Midlands, on behalf of a major Housing Association, as part of a development expected to be completed within two years. The remediated land has been provided by MDL and your Company has entered into an agreement with MDL to provide the construction services for the new development. As your Company's Independent Director and, having consulted with WH Ireland, the Company's nominated adviser, I consider that the terms of this transaction are fair and reasonable insofar as its shareholders are concerned. This is the first significant new business for your Company for some time and we remain confident that further similar opportunities will be forthcoming such that your Company will be moving towards a profitable trading position in the months ahead. Outlook The overall loss for the period is in line with your Board's expectations and reflects the increased start up costs associated with the Company's new strategy which has already demonstrated its first success with the new contract announced today. The Board is confident that the Company will continue to see more opportunities in the new build market, particularly working in partnership with the major providers of new Affordable Housing in the UK. Hamilton Anstead Chairman Enquiries: |
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| Mar City PLC | www.marcityplc.com | Hamilton Anstead, Chairman | +44 (0) 7798 646100 |
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| WH Ireland Limited | www.wh-ireland.co.uk | Mike Coe / Marc Davies | +44 (0) 117 945 3470 |
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| Gable Communications John Bick | +44 (0) 20 7193 7463 |
MAR CITY PLC STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2011 |
| Note | 6 months to 30/06/2011 Unaudited | 6 months to 30/06/2010 Unaudited | Year ended 31/12/2010 Audited |
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| £000 | £000 | £000 |
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| Other Income | 4 | 451 | - | - |
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| Administrative expenses |
| (1,054) | (14) | (106) |
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| | | | Loss from operations |
| (603) | (14) | (106) |
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| Finance income |
| 8 | - | - |
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| Loss before taxation |
| (595) | (14) | (106) |
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| Taxation |
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| Loss after taxation attributable to equity holders of the company |
| (595) | (14) | (106) | Other comprehensive income |
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| Total comprehensive expense for the period |
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| Loss per share |
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| - basic | 3 | | | | - diluted | 3 | (0.27)p | (0.01)p | (0.05)p |
MAR CITY PLC STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011 |
| Note | 30/06/2011 Unaudited | 30/06/2010 Unaudited | 31/12/2010 Audited | Non-current assets |
| £000 | £000 | £000 | Intangible assets |
| 661 | - | 661 |
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| Current assets |
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| Trade and other receivables |
| 162 | 6 | 11 | Cash and cash equivalents |
| | | | Total current assets |
| 650 | 245 | 221 |
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| Total assets |
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| LIABILITIES |
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| Current liabilities |
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| Trade and other payables |
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| Liabilities falling due after one year | 5 | 290 | - | - | Total liabilities |
| 408 | 17 | 85 |
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| EQUITY |
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| Called up share capital | 5 | 627 | 487 | 487 | Share premium account |
| 1,672 | 813 | 813 | Other reserves | 5 | 363 | - | 661 | Share based payment reserve |
| - | 20 | - | Profit and loss account |
| | | | Total equity attributable to equity holders of the company |
| 904 | 228 | 797 | Total equity and liabilities |
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MAR CITY PLC STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2011 |
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| Share capital | Share premium account | Other reserves | Share based payment reserve | Retained earnings | Total equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
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| | At 1 January 2010 | 487 | 813 | - | 20 | (1,078) | 242 | |
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| | Transactions with owners | - | - | - | - | - | - | | Loss for the period | - | - | - | - | (14) | (14) | |
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| | Other comprehensive income | - | - | - | - | - | - |
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| | At 30 June 2010 | 487 | 813 | - | 20 | (1,092) | 228 | |
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| | Lapse of share warrants | - | - | - | (20) | 20 | - | Deferred share consideration | - | - | 661 | - | - | 661 | |
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| Transaction with owners | - | - | 661 | (20) | 20 | 661 | Loss for the period | - | - | 661 | - | (92) | (92) |
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| At 31 December 2010 | 487 | 813 | 661 | - | (1,164) | 797 |
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| 140 | 860 | - | - | - | 1,000 | Share consideration |
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| Variation to deferred share consideration | - | - | (298) | - | - | (298) | Transaction with owners | 140 | 860 | (298) | - | - | 702 | Loss for the period | - | - | - | - | (595) | (595) | At 30 June 2011 | 627 | 1,672 | 363 | - | (1,759) | 904 |
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MAR CITY PLC STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2011 |
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| 6 months to 30/06/2011 Unaudited | 6 months to 30/06/2010 Unaudited | Year ended 31/12/2010 Audited |
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| £000 | £000 | £000 |
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| Cash flows from operating activities |
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| Loss before taxation |
| (595) | (14) | (106) | Finance income |
| (8) | - | - | Increase in trade and other receivables |
| (150) | (2) | (7) | Increase in trade and other payables |
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| Cash flows from financing activities |
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| Issue of shares |
| 1,000 | - | - | Net cash inflow from financing activities |
| 1,000 | - | - |
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| Net increase in cash and cash equivalents |
| 279 | (17) | (46) | Cash and cash equivalents brought forward |
| 210 | 256 | 256 | Cash and cash equivalents carried forward |
| 489 | 239 | 210 |
MAR CITY PLC NOTES TO THE INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2011 1. GENERAL INFORMATION The information for the period ended 30 June 2011 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The figures for the year ended 31 December 2010 have been extracted from the 2010 statutory financial statements prepared under International Financial Reporting Standards ("IFRS") as adopted by the European Union. The auditors' report on these accounts was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. A copy of the statutory accounts for that period has been delivered to the Registrar of Companies. Copies of this statement will be available on the Group's website (www.marcityplc.com) and from Mar City Plc, Mar House, 1036 Stratford Road, Shirley, Solihull, West Midlands B90 4EE. 2. BASIS OF PREPARATION The interim financial statements have been prepared in accordance with IFRS as adopted by the European Union. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and for this reason they continue to adopt the going concern basis in preparing the financial statements. The principal accounting policies of the Company remain unchanged from those set out in the Company's 2010 Annual Report. 3. LOSS per share The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The impact of the warrants on the loss per share is anti-dilutive.
| Basic loss per share |
| 6 months to 30/06/2011 Unaudited | 6 months to 30/06/2010 Unaudited | Year ended 31/12/2010 Audited |
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| Loss on ordinary activities after tax (£'000) | | | | |
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| Weighted average number of 0.25p ordinary shares | | | | |
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| Loss per share - basic | | | | - diluted | | | |
4. OTHER INCOME
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| 30/06/2011 Unaudited | 30/06/2010 Unaudited | 31/12/2010 Audited |
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| £000 | £000 | £000 |
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| Management Income from Mar City Developments Ltd |
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Mar City Developments Limited is a related party under the common control of Maggie Ryan and Tony Ryan. 5. SHARE CAPITAL
| | 30/06/2011 Unaudited | 30/06/2010 Unaudited | 31/12/2010 Audited |
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| £000 | £000 | £000 |
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| Authorised |
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| 4,000,000,000 ordinary shares |
| 10,000 | 10,000 | 10,000 |
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| Allotted, issued and fully paid |
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| 194,866,667 ordinary shares of 0.25p |
| - | 487 | 487 | 250,890,834 ordinary shares of 0.25p |
| 627 | - | - |
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| Shares issued and fully paid at the beginning of the period |
| 194,866,667 | 194,866,667 | 194,866,667 | Shares issued and fully paid during the period |
| 56,024,167 | - | - | Shares issued and fully paid at the end of the period |
| 250,890,834 | 194,866,667 | 194,866,667 |
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All ordinary shares have the same rights and there are no restrictions on the distribution of dividends or repayment of capital. On 18th March 2011 the company issued 56,024,167 new ordinary shares of 0.25p for proceeds of £1,000,000 before expenses. As disclosed in the 2010 Annual Report, under a Business Co-operation Agreement, the Company acquired the Residential Housebuilding Team of MDL for a consideration based on 2.5 times the pre-tax profit of Mar City Homes Limited during the two years ending 31 December 2012, subject to a maximum consideration of £800,000 to be satisfied by the issue of ordinary shares. On 15 March 2011, a variation of the terms of the Business Co-operation Agreement was agreed which has resulted in an adjustment to the consideration payable. As a result of the variation the consideration will now be settled through a combination of cash and shares up to a maximum of £225,000 in cash and 28,500,000 ordinary shares. This has resulted in a liability being recognised at 30 June 2011 of £290,000 and the creation of an Other reserve, of £363,000. |
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This information is provided by RNS
The company news service from the London Stock Exchange END IR LLMITMBMTBIB
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