Bluehone Holdings Plc

August 31, 2010 11:02 ET

Final Results


31 August 2010

Bluehone Holdings plc- Ticker BLUP

Bluehone Holdings plc ("Bluehone Holdings" or "the Company" or "the Group")

Bluehone Holdings is pleased to announce its results for the year to 31 March 2010. The financial
information set out is derived from the statutory financial statements of Bluehone Holdings plc for
the year to 31 March 2010. The statutory financial statements for the year to 31 March 2010, upon
which an unqualified audit report has been given, have not been filed with the Registrar of Companies.
The statutory financial statements will be posted to shareholders in due course and will be available
in electronic format from


William Brown, Bluehone Holdings plc - 020 7496 8929

Ed Frisby, finnCap - 020 7600 1658
                                         CHAIRMAN'S STATEMENT
I am pleased to present my report to shareholders for the year ended 31 March 2010. The year was one
of significant change for your Company as it transformed from a cash shell to an operating business
with the reverse takeover of Bluehone Investors LLP ("Bluehone") on 11 November 2009. On this date the
Company also made investments in Elderstreet Investments and Evolve Capital. The Company also changed
its name from Investments West Midlands PLC to Bluehone Holdings PLC.

The results presented therefore include the trading from Bluehone from the date of acquisition on 11
November 2009 together with the costs of making the acquisitions and having your Company's shares
relisted on PLUS Markets.

During the year, the Company generated Revenue of GBP 382,677. However costs of the reverse takeover
and relisting amounted to GBP 155,127 and other administrative costs of GBP 30,000 were incurred
relating to payments to directors and officers of the Company for services supplied from the Company's
formation to the time of relisting. This resulted in a loss after tax of GBP 159,514.

In the year the Group's cash reserves increased from GBP 237,732 to GBP 726,253.

Review of  Subsidiary and Investments

The principal subsidiary of the group is Bluehone which is a FSA regulated investment management
business, specialising in managing funds in the small companies sector. The business was formed in
1995 by its three Partners, Bill Brown, Robert Mitchell and Stuart Rollason, all of whom had
previously worked together at ISIS Asset Management Plc (now F&C Asset Management Plc).
On the reverse takeover of Bluehone by the Company, previously Investments West Midlands Plc, the
three Partners became directors of  the Company and collectively are the majority shareholders of the

Bluehone manages two funds focussed on small companies and AIM companies in particular. The two funds
are Bluehone AIM VCT 2 plc ("VCT 2") and Active Capital Trust plc ("Active") . VCT 2 is an investment
vehicle investing under the VCT rules which provide a number of taxation benefits and incentives to
its shareholders. This company has recently undertaken an enhanced buy back and share issue allowing
its shareholders to reinvest proceeds from a buyback and benefit from further tax relief. Active is an
investment trust that is currently realising value from its portfolio and progressively returning cash
to its shareholders. The realisation process has been very successful over the past year and the
shareholders have benefited from both regular capital returns and asset growth during the period.
Bluehone was incentivised to conduct this process and it is anticipated that performance fees will be
earned on this contract during the year to 31 March 2011.
For the year to 31 March 2010, Bluehone had turnover of GBP 991,000 and produced a profit after
Partners' remuneration of GBP 231,000 and other costs.

The Company has plans at an advanced stage to launch a new fund which will focus on generating income
from small companies. It is anticipated that this fund will be launched during the current year and
shareholders in the Company will be given on opportunity to invest at the outset.

The other investments held by the Company are Elderstreet Investments Limited ("Elderstreet") and
Evolve Capital plc ("Evolve").
Elderstreet is a specialist private equity investor with an expertise in technology companies and
manages funds in this area, including a VCT.
Evolve  is an investment company with investments in PLUS Market companies as well as a controlling
shareholding in AIM listed Astaire Group plc ("Astaire"). We have been disappointed by the
developments at Astaire since we made the investment in Evolve and the benefits we anticipated from
the relationship are now unlikely to materialise. From an investment perspective, however, the
investments of Evolve would appear to cover our investment fully and we will seek to continue to
liaise with the Board of Evolve to maximise the value of our holding.


Your Board is continuing to look for opportunities to develop the Group further with the priority
being to launch the income fund. Additional opportunities will also be considered including the
acquisition of other funds or mandates or acquisitions of similar businesses and taking stakes in
financial services related companies.

Your Board does not recommend the payment of a dividend for the year.

John Wheatley


                                                                                                 Year          10 months ended
                                                                                        31 March 2010            31 March 2009
                                                                       GBP                     GBP                                    GBP
Continuing operations                                                       -                                                -
Acquisitions                                                          382,677                                                -
                                                                                              382,677                        -
Administrative expenses                                                                                                       
Continuing operations                                                (69,804)                                         (23,221)
Acquisitions                                                        (311,216)                                                -
                                                                                            (381,020)                 (23,221)
Re-listing expenses                                                                                                           
Continuing operations                                               (155,127)                                                -
Acquisitions                                                                -                                                 
                                                                                            (155,127)                        -
Operating profit / (loss)                                                                                                     
Continuing operations                                               (224,931)                                         (23,221)
Acquisitions                                                           71,461                                                -
                                                                                            (153,470)                 (23,221)
Interest receivable and similar income                                                                                        
Continuing operations                                                     183                                            6,169
Acquisitions                                                              490                                                -
                                                                                                  673                    6,169
Interest payable  and similar charges                                                                                         
Continuing operations                                                       -                                                -
Acquisitions                                                          (1,573)                                                 
                                                                                              (1,573)                        -
Profit / (loss) on ordinary activities                                                                                        
Continuing operations                                               (224,748)                                         (17,052)
Acquisitions                                                           70,378                                                -
                                                                                            (154,370)                 (17,052)
Tax on profit on ordinary activities                                                          (5,144)                        -
Loss for the financial year / period                                                        (159,514)                 (17,052)
Basic and diluted loss per share                                                                 0.30                     0.14


                                                                                              2010             2009
                                                                                               GBP              GBP
Fixed Assets                                                                                                       
Intangible fixed assets                                                                    966,959                -
Tangible assets                                                                                  -                -
Investments                                                                                592,308                -
                                                                                         1,559,267                -
Current Assets                                                                                                     
Debtors                                                                                    214,610            4,514
Cash at bank and in hand                                                                   726,253          237,732
                                                                                           940,863          242,246
Creditors: Amounts falling due within one year                                           (294,792)          (8,080)
Net current assets                                                                         646,071          234,166
Total assets less current liabilities                                                    2,205,338          234,166
Creditors: Amounts falling after more than one year                                        (2,128)                -
                                                                                          ________           ______
Net assets                                                                               2,203,210          234,166
Capital and reserves                                                                                               
Called up equity share capital                                                           2,378,408          251,100
Share premium account                                                                       66,501           65,251
Warrant reserve                                                                                  -                -
Profit and Loss Account                                                                  (241,699)         (82,185)
Shareholders' funds                                                                      2,203,210          234,166


                                                                                              2010             2009
                                                                                               GBP              GBP
Net cash outflow from operating activities                                                (92,410)         (26,558)
Returns on investments and servicing of finance                                                                    
Interest received                                                                              673            6,169
Interest element of finance lease rental payments                                          (1,573)                -
Net cash (outflow) / inflow from returns on investments and                                 ______            _____
servicing of finance                                                                         (900)            6,169
Capital expenditure and financial investment                                                                       
Acquisition of investments (non cash consideration)                                      (592,308)                -
Acquisition of goodwill      (non cash consideration)                                    (986,004)                -
Net cash outflow for capital expenditure and                                             _________           ______
financial investment                                                                   (1,578,312)                -
                                                                                         _________           ______
Cash outflow  before financing                                                         (1,671,622)         (20,389)
Issue of equity share capital (non cash consideration)                                   2,122,308                -
Issue of equity share capital                                                                5,000                 
Share premium on issue of equity share capital                                               1,250                -
Acquisition of leases                                                                       36,788                -
Capital repayment of finances leases                                                       (5,203)                -
                                                                                          ________           ______
Net cash inflow from financing                                                           2,160,143                -
                                                                                           _______          _______
Increase / (decrease)  in cash                                                             488,521         (20,389)

Contact Information

  • Bluehone Holdings Plc