Restore Regulatory News (RST)

23 Feb 2005 07:00

Mavinwood PLC23 February 2005 Mavinwood plc Unaudited Preliminary Results For the period ended 31 December 2004 Mavinwood plc ( 'Mavinwood' or the 'company' ) announces its preliminary resultsfor the period ended 31 December 2004. These results relate to the period fromincorporation on 2 July 2004 to 31 December 2004. Highlights •Successful flotation on AIM on 5 November 2004 raising £2.14m before expenses •Loss on ordinary activities after taxation of £81,442 •Cash at bank as at 31 December 2004 of £1.97m •Referring to the outlook, Chairman Kevin Mahoney said ''Since our flotation in November last year we have fully researched the supportservices market and have identified a number of potential acquisitionopportunities. Negotiations are in progress with a number of vendors'' Chairman's statement Mavinwood Mavinwood was incorporated on 2 July 2004 and these results are in respect ofthe period from that date until 31 December 2004. The company was floated on the AIM market of the London Stock Exchange ("AIM")on 5 November 2004. Mavinwood's initial objective is to acquire one or morespecialist support services businesses that have the potential for growth,either organically or in combination with other complementary businesses.Reflecting the experience and knowledge of the directors, Mavinwood intends tofocus initially on acquisitions of services businesses, including acquisitionsin the home emergency and business-to-business service sectors. We plan tointroduce across the Group technology advances designed to integrate processesand improve visibility for customers. Following the first acquisition, we intend to use our skills and marketknowledge to increase organic growth and improve the profitability of eachacquired business. We will aim to improve profitability by reviewing acquiredmanagement, introducing additional capital to support growth, introducing agreater emphasis on sales and marketing and enhancing business strategies tocreate superior performance and enhance shareholder value. Where appropriate, Mavinwood intends to accelerate the growth of any acquiredbusiness through one or more complementary acquisitions. This would aim toincrease the customer base, expand cross-sale opportunities and share costs ofprocess improvement and technology development. By adopting this strategy we intend to create a market-leading UK supportservices business. Results Turnover for the period was nil and will remain so until an acquisition iscompleted. The operating loss was £94,053 which comprised administrative expenses relatingto the approximately two month period from flotation until 31 December 2004.Within these costs there were set up expenses such as IT costs and stationeryand other costs disproportionate to the two month trading period. We estimatethese amounted to approximately £30,000 in the period. Flotation expenses of£245,482 have been charged to the share premium account. Interest income for theperiod was £12,611 resulting in a loss before tax of £81,442 and a loss perordinary share of 1.07 pence. As at 31 December 2004, Mavinwood's cash balances amounted to £1,968,909. Dividends As previously stated in the company's AIM Admission document, we intend toreinvest profits in opportunities as they arise. As a result we do not intend topropose a dividend. When Mavinwood's business has grown to a level where itgenerates cash in excess of its anticipated requirements, we will then determinean appropriate dividend policy. Outlook We are currently involved in discussions with a number of potential acquisitionswhich are consistent with our strategy. We believe that the economy continues to provide attractive opportunities in thesupport services sector and we look forward to 2005 with confidence. Profit and loss accountfor the period from 2 July 2004 to 31 December 2004 For the period from 2 July 2004 to 31 December 2004 £ Administrative expenses (94,053) Operating loss (94,053)Interest receivable 12,611 Loss on ordinary activities before taxation (81,442)Tax on loss on ordinary activities - Loss on ordinary activities after taxation (81,442) All results are derived from continuing operations. There are no recognised gains or losses in the period other than the loss forthe period. There is no difference between the loss on ordinary activities before taxationand the result for the period noted above and the historical cost equivalents. The basic and diluted loss per share of 1.07p is based on the retained loss forthe period of £81,422 and on the average number of ordinary shares in issueduring the period of 7,601,099. Balance sheetat 31 December 2004 31 December 2004 £Current assetsDebtors 11,037Cash at bank 1,968,909 1,979,946 Creditors: amounts falling due within (66,870)one year Net current assets 1,913,076 Net assets 1,913,076 Capital and reservesCalled up share capital 73,900Share premium account 1,920,618Profit and loss account (81,442) Total equity shareholders' funds 1,913,076 Cash flow statementfor the period from 2 July 2004 to 31 December 2004 Note For the period from 2 July 2004 to 31 December 2004 £ Net cash outflow from operating activities 2 (38,220) Returns on investments and servicing of financeInterest received 12,611 Net cash outflow before financing (25,609) FinancingIssue of share capital 2,240,000Expenses paid in connection with share issues (245,482) Net cash inflow from financing 1,994,518 Increase in cash 1,968,909 Notes1) Basis of preparation The financial information set out in this preliminary announcement, which wasapproved by the directors on 23 February 2005, has been prepared on the basis ofthe accounting policies set out in the accounts for the period ended 31 December2004. The financial information does not constitute the company's statutoryaccounts for the period ended 31 December 2004 but is derived from thoseaccounts. Statutory accounts for 2004 will be delivered following the company'sAnnual General Meeting. The auditors have reported on those accounts; theirreports were unqualified and did not contain statements under section 237(2) or(3) of the Companies Act 1985. 2) Reconciliation of operating loss to net cash outflow from operating activities 2004 £ Operating loss (94,053)Increase in debtors (11,037)Increase in creditors 66,870 Net cash outflow from operating activities (38,220) ENQUIRIES Mavinwood plcKevin Mahoney 020 7661 9650Mike Vincent 020 7661 9651 Weber ShandwickJohn Coles 020 7067 0749 ENDS This information is provided by RNS The company news service from the London Stock Exchange