Tower Gate Capital Limited
LSE : TGCP

December 18, 2009 08:29 ET

Final Results to 31 March 2009

18 DECEMBER 2009

                                              TOWER GATE CAPITAL PLC
                                                         
                              AUDITED FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2009

Tower Gate Capital PLC ("the Company") announces audited final results for the year ended 31 March 2009.

CHAIRMAN'S STATEMENT
This  financial year saw the near total collapse of the World's investment banking and broader banking system. With
both  ourselves and our client and investment companies, banking lines were pulled or frozen, and a deep  sense  of
panic set in. Cash seemed to disappear overnight.

Being  small and nimble, and tightly controlled, and having cut admin costs right back, it was perhaps  easier  for
Tower  Gate  Capital to dodge and weave through the rubble. However we were affected by the Credit Crunch  also  in
many ways.

On  the  investment  side, we had success with the acquisition we made in these troubled  times  of  Anglo  Ukraine
Energy,  a small oil company operating in Kiev and with oil fields in Crimea. This is the sort of transaction  that
can  be  done  in  severe  down-turns. Its carrying value was £1.63m at the year end.  It  includes  an  unrealised
revaluation  surplus  of  £1.59m, which has been booked to a balance sheet revaluation reserve.  This  follows  our
prudent policy of only recognising surpluses through the profit and loss account when realised.   Our Spanish based
wireless  software investment, m-Centric, saw its "Whizzper" product (www.whizzper.com) developed  further  into  a
Twitter type product and jointly developed in a new contract for the fan base of the football club, Real Madrid. We
are  hopeful  that this "Twitter for football" can be expanded across other teams. These developments  have  helped
this investment to maintain its carrying value of £1.32m.

Against  these successes, we made write downs across other investments, and especially we wrote off our  investment
in  Medoco,  a  project to work on a pipeline in the Middle East. The project never got started, and also  for  our
troubles,  we  got  filed with a vexatious law suit by one of the potential participants, that  we  find  ourselves
having  to fight. We cannot see any basis in their claim, nor any value in any event in a project that was probably
fraudulently, presented to us. This has very badly affected our results this year and contributed to a loss on this
failed  project  of  £825k; £375k for the write-off of this investment and £450,000 for ongoing  litigation  costs.
However we have security for our costs from the plaintiff and intend to recover our costs through the litigation.

On  the advisory side, we continue to seek and work on fund raising and M&A mandates, although the Market has  been
very  slow, and client opportunities tight. Our team is also very small, having cut costs back to the bone for this
poor  Market.  Not  unsurprisingly, the income generated from this side of the business was very  modest  at  £152k
(2008: £429k), which mainly related to Anglo Ukraine Energy and other projects.

During the year, we continued with our commitment to PLUS markets by re-registering ourselves as a PLC and as  part
of the process, we successfully undertook a special capital reduction to tidy-up our reserves.

On  the  financial side, cashflow continues to be a real issue, with the group relying heavily on the secured  loan
note  from my Family to meet its ongoing funding requirements. At the year end, the loan principal owed was  £1.62m
(2008:  £1.36m), together with accrued interest of £272k (2008: £132k). Administrative expenses have been cut  back
hard, and we have a significantly lower cost base for this tough environment. However, the Medoco debacle and other
capital  write  offs,  have  pulled us into a very large realised loss this year of £1.185m  (2008:  £464k).  On  a
positive  note, we achieved a revaluation surplus on our investments of £1.197m (2008: £29k). At the year end,  the
Group's net assets were £497k (2008: £347k).

Notwithstanding  some  of this year's set-backs, we continue to remain positive about Tower Gate  Capital's  future
prospects. Tower Gate Capital has always been a House working on opportunities at the riskier end of the  spectrum.
We  also  seek growth opportunities. We expect to have losers and winners. We are developing more and more into  an
emerging markets focussed group, seeking to help companies there grow and access Western financial markets, both in
Europe and the US. We are very comfortable with this strategy going forwards, as the emerging markets will continue
their  high growth momentum (once they pull out of the current troubles), as against the slower growth in the  more
mature Western markets. Also many competitors have pulled out of these areas, or collapsed entirely.

We  are currently working on a number of projects and opportunities not discussed above, that could be valuable for
the group going forwards.



Mr M Hudson
Chairman
11 December 2009


The  Auditors  have  audited  the annual results and given an un-qualified opinion, however  the  Auditor's  report
includes  an emphasis of matter regarding the value of investments and the Group's ability to continue as  a  going
concern.

Extract from the Independent Auditor's report to the members of Tower Gate Capital Plc

"Emphasis of Matter

(a)     Investments
The  carrying value of the investments is based on a directors' valuation, the outcome of which is dependent on the
investments  performing as expected.  However, should they not perform as expected, a write down may be  necessary,
which would have a consequential effect on the net assets of the Group and the Company.

(b)     Going Concern
The  Group  incurred a net loss of £1,184,832 during the year ended 31 March 2009 and, at that  date,  the  Group's
total  assets exceeded its total liabilities by only £497,056. These conditions, along with other matters explained
in  note  1 to the financial statements, indicate the existence of material uncertainty which may cause significant
doubt  about  the  Company's ability to continue as a going concern. The financial statements do  not  include  the
adjustments that would result if the Company was unable to continue as a going concern. "

We  consider  that  these  matters should be brought to your attention but our opinion is not  qualified  in  these
respects."

Note 1 to the financial statements states:

"At  31  March  2009  the Group and the Company had net current liabilities of £595,741 and £770,022  respectively.
Notwithstanding this, the Hudson family have indicated their willingness to support the Group and the  Company,  in
the form of a secured loan facility and consequently the Directors consider it appropriate to prepare the financial
statements on the going concern basis."


The following details are extracted from the Company's Report and Accounts for the year ended 31 March 2009.

TOWER GATE CAPITAL PLC
AUDITED FINAL RESULTS

GROUP PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2009

                                                                                 YEAR ENDED            YEAR ENDED
                                                                              31 MARCH 2009         31 MARCH 2008
                                                                                        GBP                   GBP
                                                                                                                 
Turnover                                                                            151,692               428,571
Net losses arising from fix asset investments                                     (483,866)             (193,745)
Gross (loss)/profit                                                               (332,174)               234,826
Administrative expenses                                                           (712,630)             (593,880)
Operating Loss                                                                  (1,044,804)             (359,054)
Interest receivable and similar income                                                9,601                 1,091
Interest payable and similar charges                                              (149,629)             (105,541)
Loss on ordinary activities before taxation                                     (1,184,832)             (463,504)
Taxation                                                                                  -                     -
Loss on ordinary activities after taxation                                      (1,184,832)             (463,504)
Loss per share                                                                                                   
Basic (pence)                                                                       (5.21p)               (2.15p)
Diluted (pence)                                                                     (5.02p)               (2.15p)

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2009

                                                                                YEAR ENDED            YEAR ENDED
                                                                             31 MARCH 2009         31 MARCH 2008
                                                                                       GBP                   GBP
                                                                                                                
Loss for the financial year                                                    (1,184,832)             (463,504)
Unrealised surplus on fixed asset investments                                    1,552,182                29,026
Unrealised losses on fixed asset investments                                     (355,249)                     -
                                                                                                                
Total recognised gains/(losses) relating to the year                                12,101             (434,478)
                                                                                                                

GROUP NOTE OF HISTORICAL COST PROFITS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2009

                                                                                YEAR ENDED            YEAR ENDED
                                                                             31 MARCH 2009         31 MARCH 2008
                                                                                       GBP                   GBP
                                                                                                                
Reported loss for the financial year                                           (1,184,832)             (463,504)
                                                                                                                
Realisation of investment revaluation gains of previous                                  -                25,861
years
                                                                                                                
Historical cost loss for the financial year                                    (1,184,832)             (437,643)

GROUP BALANCE SHEET
AS AT 31 MARCH 2009

                                                                                    AS AT                  AS AT
                                                                            31 MARCH 2009          31 MARCH 2008
                                                                                      GBP                    GBP
                                                                                                                
FIXED ASSETS                                                                                                    
Tangible assets                                                                     7,016                  1,046
Investments                                                                     3,155,764              1,971,220
                                                                                3,162,780              1,972,266
CURRENT ASSETS                                                                                                  
Debtors                                                                            85,821                192,863
Cash at bank and in hand                                                           10,627                  8,239
                                                                                   96,448                201,102
Creditors-amounts falling due within one year                                   (692,189)            (1,826,197)
NET CURRENT LIABILITIES                                                         (595,741)            (1,625,095)
TOTAL ASSETS LESS CURRENT LIABILITIES                                           2,567,039                347,171
                                                                                                                
Creditors - amounts falling due in more than one year                         (1,619,983)                      -
Provisions for liabilities                                                      (450,000)                      -
NET ASSETS                                                                        497,056                347,171
                                                                                                                
CAPITAL AND RESERVES                                                                                            
Called up share capital                                                           115,222              1,483,249
Share Premium Account                                                                   -              5,154,008
Revaluation Reserve                                                             1,588,287                391,354
Profit & Loss Account                                                         (1,206,453)            (6,681,440)
                                                                                                                
SHAREHOLDERS' FUNDS                                                               497,056                347,171

NOTE
Loss  per  share  is calculated by dividing the loss attributable to ordinary shareholders by the weighted  average
number of ordinary shares in issue during the year.

Reconciliations of the loss and weighted average number of shares used in the calculations are set out below.

                                                                               YEAR ENDED             YEAR ENDED
                                                                            31 MARCH 2009          31 MARCH 2008
                                                                                      GBP                    GBP
                                                                                                                
Loss per share (pence)                                                                                          
Basic                                                                             (5.21)p                (2.15)p
Diluted                                                                           (5.02)p                (2.15)p
                                                                                                                
Loss                                                                                                            
Loss attributable to the equity holders of the Company                        (1,184,832)              (463,504)
                                                                                                                
Number of shares                                                                   Number                 Number
Basic weighted average number of shares in issue                               22,760,315             21,578,661
Diluted weighted average number of shares in issue                             23,603,012             21,578,661



THE DIRECTORS OF THE ISSUER ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT

                                                     --ENDS--

CONTACT DETAILS:

Tower Gate Capital PLC : Michael Wright   Tel: 020 7409 0500

Fisher Corporate Plc:            Carolyn Hazard   Tel: 020 7388 7000

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