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(AVR.L) Avarae Global Coins PLC Buy/Sell
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| Date/Time | Headline | Source |
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| 18-12-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 3662E
Avarae Global Coins PLC
18 December 2009
AVARAE GLOBAL COINS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS
TO 30 SEPTEMBER 2009
London (AIM: AVR): 18 December 2009 - Avarae Global Coins plc ("Avarae" or the "Company"), the UK's only publicly traded specialist investment company dedicated to investing in rare and high quality coins, is pleased to announce its unaudited interim results for the six months to 30 September 2009.
Highlights for the period include:
* Continued investment in rare and high quality coins in the period with acquisitions during the period of £0.23 million, taking the value of the coin inventory to approximately £9.8 million at the period end.
* Impressive additions in the period, including:
* Hong Kong Proof Dollar, 1866;
* Victoria Proof Set Five Pounds and down, 1893;
* Edward VIII Unique Matt Florin, 1937; and
* Anne Five Guinea, 1709.
* Opportunistic sales of £86,000 (2008: £144,000) recorded in the period of a small number of coins recently acquired into the portfolio.
* Net loss for the period of approximately £140,000 (2008: loss £60,000), resulting in a loss per share of 0.13 pence.
* Net assets as at 30 September 2008 of £11.83 million.
* Re-registration of the Company after period end.
Commenting, Tanya O'Carroll, Executive Director of Avarae, said:
"In previous reports, we have stated that, in the face of a global recession, Avarae is well positioned as an alternative asset play. We maintain this belief. In our opinion, the market for the highest quality rare coins should continue to attract good demand and steady price growth. Continued strong competition for the very best pieces, such as those owned by Avarae, should position the Company well in the coming year.
"Since the period end, the Company has continued to be cautious about its investments, acquiring coins for a value of approximately £0.1 million and realising approximately £0.04 million. Whilst the Company is still only three and half years into its investment phase, the directors and their advisers are working hard on making further realisations during the year ahead and anticipate making some significant sales in the upcoming international auctions in the second half of the financial year."
For further information on Avarae Global Coins plc, please contact:
Tanya O'Carroll/Matt Wood +44 (0)16 2461 5614
Avarae Global Coins plc
Adrian Hadden/Hugh Field/Stewart Wallace +44 (0)20 7523 8350
Collins Stewart Europe Limited
Gordon Puckey +44 (0)20 7947 2856
Phoenix Financial PR
Directors' Report
Introduction
We are pleased to present the unaudited interim results of Avarae Global Coins plc ("Avarae" or the "Company") for the six months ended 30 September 2009 to our shareholders. During the period under review the Company made further investments in its portfolio of rare and high quality coins, taking the value of the coin portfolio to £9.80 million at the period end. In line with the Company's stated strategy, no revaluation has been undertaken for the Company's interim results.
Avarae provides access for institutions and individuals wanting to diversify their investment portfolios away from the traditional asset classes such as equities, property or bonds without the need to be an expert in the coin-collecting sector. The Board's strategy since its admission to trading on AIM in May 2006 has been to invest actively in the rare and highest quality segment of the coin-collecting sector in various countries around the world. We are currently building up an impressive portfolio of extremely high quality, rare coins which we intend to predominantly hold for the long-term (i.e. 3 to 5 years), in order to achieve long-term capital growth for our shareholders, while also taking advantage of short-term trading opportunities, as the market for rare coins continues to grow.
The coin-dealing sector
Whilst many are treading cautiously in financial markets at present, activity in the rare coin market has remained positive. The numismatic industry has seen an influx of new buyers looking for tangible assets and fresh areas to place their money as traditional asset classes fail to deliver robust financial gains. The majority of the funds coming into the numismatic market are targeting the higher quality coin rarities and this is adding considerable pressure on availability. A number of important coin collections have come up for sale worldwide (including in the world's largest market, the US, and the high growth Russian market) with auction houses continuing to achieve record prices, particularly for the highest quality, rare pieces.
The strength of the top end of the market is relevant to Avarae for a number of reasons, not only because it is aligned with Avarae's investment strategy, but also because these high quality rarities went through their own growing phases over time to be in such high demand today. As a result, the market immediately below this top tier is expected to move into its own growing phase as demand for more affordable quality coins comes into focus. For every unique or nearly unique coin sold, there is a positive spin-off created which in turn filters through the market, improving demand for the next tier, which Avarae does have some, albeit limited, exposure to.
Historically, if purchased correctly, investments in rare and high quality coins can reduce the risk of overall investment portfolios and have produced significantly better returns than investments in equities, bonds or property over a prolonged period. Coins and coin collections of the highest quality can produce annual compound returns in excess of 10%.
Avarae's investments
In the period to September 2009, the Company acquired approximately £0.23 million worth of coins (H1 2007: £1.40 million), taking the value of the coin portfolio to £9.80 million (31 March 2009: £9.64 million). The rate of investment in the portfolio was lower than in previous periods, in part due to the directors taking a cautious approach during the current difficult economic environment and in part as a result of the Company's numismatic advisers continuing to concentrate on identifying and acquiring specific coins to complete existing collections or themes within the portfolio, and then only those coins of sufficiently high quality and rarity.
Purchases of high quality English and mainland European coins during the period were again prevalent. Avarae also acquired some rare and noteworthy coins from auctions in Hong Kong held in August 2009. Examples of rare coins acquired during the period and since the period end include:
* Hong Kong Proof Dollar, 1866;
* Victoria Proof Set Five Pounds and down, 1893;
* Edward VIII Unique Matt Florin, 1937; and
* Anne Five Guinea, 1709.
Examples of high quality coin sales during the period with significant margins include:
* Stato Pontificio Paolo III 1534-1549 Fiorino di Camera; and
* An Umayyad temp Marwan II Dinar 132h.
Financial Results
During the period, the Company made a number of opportunistic disposals of coins from within the portfolio, totalling £86,000 (H1 2008: £144,000). A number of the coins sold were duplicates within the portfolio which had only been recently acquired for a number of weeks or months. The Company also sold a number of one-off smaller value Middle Eastern and European coins that were not part of any collections that had appreciated significantly in value. The gross profit margin on coins sold during the period of 17% was up on the same period last year (H1 2008: 7%).
Administrative expenses during the period of £0.17 million were marginally down on the same period in 2008 (H1 2008: £0.18 million), reflecting the directors' continual efforts to keep a tight control on costs. Interest receivable of £0.01 million was significantly down on the same period last year (H1 2008: £0.1 million), reflecting the much lower interest rates and the lower average levels of cash balances held during the period.
Net loss for the period was £0.14 million (H1 2008: loss £0.06 million), resulting in a loss per share of 0.13 pence (H1 2008: loss per share of 0.06 pence).
In line with our stated strategy, the Company only undertakes its portfolio revaluation exercise at the end of each financial year, rather than mid-year and, only then, revaluing coins that have been held by the Company for more than 12 months. Accordingly, the £0.23 million of coins acquired in the period under review, together with the almost £2.39 million of coins acquired during the year ended 31 March 2009, remain valued at cost. The total value of the coin portfolio at the period end was £9.80 million, up from £9.64 million at 31 March 2009.
The Company ended the period with £0.82 million of net cash (31 March 2009: £1.90 million).
Trade and other receivables at the period end of £1.35 million (31 March 2009: £0.54 million) includes £1.24 million relating to the Company's agreed purchases of its own ordinary shares of 1 pence each ("Ordinary Shares") in August 2008 and April 2009 which have not yet completed. The £1.24 million comprises £0.49 million in respect of the agreed purchase of 7.0 million Ordinary Shares in August 2008 at 7.0 pence per Ordinary Share and £0.75 million in respect of the agreed purchase of 15.0 million Ordinary Shares in April 2009 at 5.0 pence per Ordinary Share. At the Company's recent annual general meeting, the Company's shareholders approved the re-registration of the Company under the Isle of Man Companies Act 2006 which will, inter alia, allow the two share buybacks to be completed subject to the consent of the respective sellers. The directors are hopeful of making an announcement in this matter in due course.
At the period end, the Company had net assets of £11.83 million (31 March 2009: £11.97 million), resulting in a net asset value per Ordinary Share ("NAV") of 10.7 pence. The Company's pro-forma NAV at the period end, on the assumption that the two share buybacks had taken place at the period end, would have been approximately 12.0 pence.
In line with our stated strategy as set out in our AIM Admission document and as the Company remains in its investment phase, no dividend has been declared in respect of the interim period.
Outlook
In previous reports, we have stated that, in the face of a global recession, Avarae is well positioned as an alternative asset play. We maintain this belief. In our opinion, the market for the highest quality rare coins should continue to attract good demand and steady price growth. Continued strong competition for the very best pieces, such as those owned by Avarae, should position the Company well in the coming year.
Since the period end, the Company has continued to be cautious about its investments, acquiring coins for a value of approximately £0.1 million and realising approximately £0.04 million. Whilst the Company is still only three and half years into its investment phase, the directors and their advisers are working hard on making further realisations during the year ahead and anticipate making some significant sales in the upcoming international auctions in the second half of the financial year.
Unaudited Income Statement
from 1 April 2009 to 30 September 2009
1 April 09 1 April 08 1 April 08
to 30 Sept to 30 Sept to 31 Mar
09 08 09
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Revenue
Sales 1 86 144 906
Cost of Sales (71) (134) (775)
Coin revaluation - - 300
---- ---- ----
Gross profit 15 10 431
Administrative expenses (169) (177) (381)
---- ---- ----
(Loss)/Profit on ordinary (154) (167) 50
activities before:
Finance income 14 103 140
---- ---- ----
(Loss)/Profit on ordinary (140) (64) 190
activities before tax
Tax on (loss)/profit on - - -
ordinary activities
---- ---- ----
(Loss)/Profit on ordinary (140) (64) 190
activities after taxation
---- ---- ----
(Loss)/Profit per share 2 (0.13p) (0.06p) 0.17p
There were no recognised gains or losses other than the loss for the period.
Unaudited Balance Sheet
as at 30 September 2009
As at As at As at
30 Sept 08 31 Mar 09
30 Sept 09
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Assets
Current Assets
Coin inventory 3 9,798 8,989 9,638
Trade and other receivables 4 1,345 97 543
Cash at bank 816 2,238 1,898
---- ---- ----
Total Assets 11,959 11,324 12,079
---- ---- ----
Liabilities and Equity
Creditors: amounts falling due 5 133 104 113
within one year
---- ---- ----
Total Liabilities 133 104 113
---- ---- ----
Equity
Called up equity share capital 6 1,101 1,031 1,101
Share premium 10,460 10,038 10,460
Profit and loss account 265 151 405
---- ---- ----
Total Equity Shareholders' Funds 11,826 11,220 11,966
---- ---- ----
Total Liabilities and Equity 11,959 11,324 12,079
---- ---- ----
Tanya O'Carroll Matthew Wood
Unaudited Cash Flow Statement
as at 30 September 2009
1 April 09 1 April 08 1 April 08
to 30 Sept 09 to 30 Sept 08 to 31 Mar 09
Unaudited Unaudited Audited
£'000 £'000 £' 000
Cash flows from operating
activities:
(Loss)/profit for the period (154) (167) 50
Adjustments for:
Increase/(decrease) in payables 20 (139) (130)
(Increase)/decrease in (802) (23) (469)
receivables
(Increase) in inventory (160) (1,265) (1,914)
---- ---- ----
Net cash flow from operations (1,096) (1,594) (2,463)
Interest received 14 103 140
---- ---- ----
Net cash received from investing 14 103 140
activities
Purchase of own shares for - (492) -
cancellation
---- ---- ----
Net cash from financing - (492) -
activities
---- ---- ----
Net (decrease) in cash and cash (1,082) (1,983) (2,323)
equivalents
---- ---- ----
Opening cash position 1,898 4,221 4,221
---- ---- ----
Closing cash and cash equivalents 816 2,238 1,898
---- ---- ----
Notes to the Unaudited Interim Financial Statements:
(1) Accounting policies
Basis of accounting
The unaudited interim financial statements have been prepared under the historical cost convention and in accordance with International Financial Reporting Standards. The accounting policies and methods of computation in the unaudited interim financial statements are the same as those of the audited financial statements 31 March 2009.
(2) Earnings per share
The loss per share for the period was 0.13p (H1 2008: loss of 0.06p). The calculation of earnings per share is based on the loss of £140,000 for the period (H1 2008: loss of £64,000) and the weighted average number of shares in issue 110,133,334 (108,756,285).
(3) Coin inventory
At the end of each financial year, the coin inventory is re-valued to market value less the VAT payable on sale. Inventory purchased since 31 March 2009 is included at its original cost price and under the current valuation policy has not been the subject of any revaluations. The valuation of the portfolio held as at 31 March 2009 was carried out by industry experts and only those coins held by the Company for at least 12 months were the subject of a revaluation exercise. This is considered by the directors to give a fair value for the inventory. The directors anticipate undertaking a further revaluation exercise for the coming financial year end.
(4) Trade and other receivables
As at As at As at
30 Sept-09 30 Sept 08 31 Mar 09
Unaudited Unaudited Audited
£'000 £'000 £'000
Trade debtors 48 8 13
Prepaid expenses 57 89 61
Other debtors 1,240 - 490
---- ---- ----
Total 1,345 97 543
---- ---- ----
Other debtors comprises £490,000 in respect of the Company's agreed purchase of 7.0 million Ordinary Shares in August 2008 and £750,000 in respect of the Company's agreed purchase of 15.0 million Ordinary Shares in April 2009. At the Company's recent annual general meeting, the Company's shareholders approved the re-registration of the Company under the Isle of Man Companies Act 2006 which should, inter alia, allow the two share buybacks to be completed subject to the consent of the respective sellers. See note 6.
(5) Payables
As at As at As at
30 Sept-09 30 Sept 08 31 Mar 09
Unaudited Unaudited Audited
£'000 £'000 £'000
Trade creditors 69 32 40
Accrued expenses 64 72 73
---- ---- ----
133 104 113
---- ---- ----
All creditors are due within one year.
(6) Share capital
As at As at As at
30 Sept 09 30 Sept 08 31 Mar 09
Unaudited Unaudited Audited
£'000 £'000 £'000
Authorised
ordinary shares of £0.01 each 2,000 2,000 2,000
---- ---- ----
Allotted, called up and fully paid
110,133,334 ordinary shares of £0.01 1,101 1,101 1,101
each
---- ---- ----
The issued share capital includes an aggregate of 22,000,000 ordinary shares the subject of the two share buybacks, see note 4. Once the two share buybacks have been completed, these 22,000,000 will be cancelled, reducing the issued share capital to 88,133,334 ordinary shares.
(7) Preparation of the Interim Report
This report was approved by the directors on 17 December 2009.
The results for the period ended 30 September 2009 are unaudited and do not constitute statutory accounts as defined in The Companies Act.
Additional copies of this report are available from the Company's registered office, Ground Floor, West Suite, Exchange House, 54-58 Athol Street, Douglas, Isle of Man, IM1 1JD or via the Company's website www.avarae.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GUGPAPUPBUBR
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| 25-11-09 | RNS |
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Avarae Global Coins - Update re: re-registration RNS Number : 0715D Avarae Global Coins PLC 25 November 2009 25 November 2009
AVARAE GLOBAL COINS PLC (the "Company")
UPDATE RE RE-REGISTRATION Further to the Company's "Result of Annual General Meeting" announcement of 16 November 2009, the Board of Avarae Global Coins Plc (AIM:AVR), the UK's only publicly traded specialist investment company dedicated to investing in rare and high quality coins, is pleased to announce that the Company has now re-registered under the Isle of Man Companies Act 2006 with company number 004526V. For further information on Avarae Global Coins plc, please contact:
Avarae Global Coins plc
Collins Stewart Europe Limited
Phoenix Financial PR This information is provided by RNS The company news service from the London Stock Exchange END
MSCBDBDBLUDGGCU More |
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| 16-11-09 | RNS |
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RNS Number : 5851C Avarae Global Coins PLC 16 November 2009 16 November 2009
AVARAE GLOBAL COINS PLC ("Avarae" or the "Company")
RESULT OF ANNUAL GENERAL MEETING The Board of Avarae Global Coins Plc (AIM:AVR), the UK's only publicly traded specialist investment company dedicated to investing in rare and high quality coins, are pleased to announce that at the Annual General Meeting of the Company held today, all resolutions were duly passed. In addition to the usual business conducted at an Annual General Meeting, the Company's shareholders approved the re-registration of the Company under the Isle of Man Companies Act 2006 and the adoption of new Memorandum and Articles of Association. The application for re-registration will be made shortly and a further announcement will be made once re-registration has completed. For further information on Avarae Global Coins plc, please contact:
Avarae Global Coins plc
Collins Stewart Europe Limited
Phoenix Financial PR This information is provided by RNS The company news service from the London Stock Exchange END
AGMCKAKKABDDPDD More |
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| 23-10-09 | RNS |
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RNS Number : 2591B Avarae Global Coins PLC 23 October 2009 23 October 2009
AVARAE GLOBAL COINS PLC ("Avarae" or the "Company") Notice of Annual General Meeting Avarae published its Annual Report and Accounts for the year ended 31 March 2009 on 30 September 2009. The document was posted to shareholders and is available from the Company's website, www.avarae.com The Annual General Meeting ("AGM") of the Company will be held at the Company's registered office at Ground Floor, West Suite, Exchange House, 54-58 Athol Street, Douglas, Isle of Man, IM1 1JD at 12:00 noon on 16 November 2009. In the 2009 Annual Report, the Board indicated that, in addition to the business usually conducted at the Company's Annual General Meeting (namely, the adoption of the audited accounts, the re-appointment of certain Directors, the re-appointment of the Company's auditors and the granting of authorities to allot new shares), the Board has concluded that it is in the best interests of the Company and the Shareholders to propose resolutions at the Annual General Meeting approving the following additional matters:
The circular containing the formal notice convening the AGM, together with the form of proxy for use at the Annual General Meeting, have been sent to Shareholders.
Avarae Global Coins plc
Collins Stewart Europe Limited
Phoenix Financial PR This information is provided by RNS The company news service from the London Stock Exchange END
NOACKBKPPBDDPKB More |
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| 23-09-09 | ||||
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Topped up 25k @ 7.18p shows as a sell on iii when in fact a BUY !!
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| 23-09-09 |
BUY
Re: !
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Announcement due Wed 30th Sept
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| 21-09-09 | ||||
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Yeah- I rang up my broker and tried to sell at 24p and was laughed at. Apparently it was an error but it did show up on a number of financial websites as a valid trade for about half an hour... I think the expression 'easy come, easy go' applies.
Anyone know when the announcement is due? More | View thread (4) | Respond | Login to Vote up | Login to Vote down |
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| 19-09-09 | ||||
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Wow for one moment I was rich then back to normal !!!!!!!!!!!!!
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