Chalkstream Investment Company plc

LSE : CHLK


August 29, 2014 07:56 ET

Half Yearly Report 2014

CHALKSTREAM INVESTMENT COMPANY PLC (the "Company")


INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 31 MAY 2014


CHAIRMAN'S STATEMENT


OVERVIEW

The  company  continues to be an Investment Vehicle during the period. The Company was established  as  an
Investment  Vehicle  and its first day of dealing on the ISDX Growth Market was 17 May  2013.   The  Board
continues to evaluate possible acquisitions.

As  at  31  May  2014,  the cash balance was GBP 703,602 and we are maintaining a  tight  control  of  the
Company's resources, which we consider adequate to support current levels of expenditure.

FINANCIAL RESULTS

The unaudited financial results for the six months to 31 May 2014 show a loss of GBP 25,630 and a loss per
share of 0.003p.

CASH FLOW AND FUNDING

Cash  resources remain adequate for the current level of operating overheads and we have funds in  hand  to
make new investments.

OUTLOOK

The Board continues to look for potential investment opportunities and they will keep investors informed of
developments.




Robert Ware
Chairman


29 August 2014


The Directors of the Issuer accept responsibility for this announcement.

FOR FURTHER INFORMATION PLEASE CONTACT:

Dominic Buch
Chalkstream Investment Company PLC
Tel: 020 7025 8054

Jon Isaacs and Nick Michaels
Alfred Henry Corporate Finance Limited
Tel:  +44 (0) 20 7251 3762

Corporate Broker
Peterhouse Corporate Finance Limited
Guy Miller and Peter Greensmith
Tel: 020 7220 9796




PROFIT AND LOSS ACCOUNTS

                                                       Unaudited                               Audited       
                                                        6 months        Unaudited            Period to  
                                                           ended        Period to          30 November    
                                                     31 May 2014      31 May 2013                 2013
                                       Note                  GBP              GBP                  GBP
                                                                                     
Administrative expenses                                 (24,208)           (4,295)             (26,279)
Share based payments                                     (1,781)          (16,286)             (20,109)
Admission expenses                                            -           (47,705)             (47,705)
                                                        -------           -------              -------
Operating loss                                          (25,989)          (68,286)             (94,093)
                                                                                     
Interest receivable                                         359               353                  722
                                                        -------           -------              -------
Loss on ordinary activities before                                                   
taxation                                                (25,630)          (67,933)             (93,371)
                                                                                     
Tax on loss on ordinary activities                            -                 -                    -
                                                        -------           -------              -------
Retained loss for the financial period                  (25,630)          (67,933)             (93,371)
                                                        =======           =======              =======
                                                                                              
                                                                                     
Loss per share (basic and diluted)     2                (0.003p)          (0.025p)             (0.017p)
                                                        =======           =======              =======
                                                                                     


There were no recognised gains or losses other than those recognised in the profit and loss account.


BALANCE SHEETS

                                                                                                          
                                                       Unaudited          Unaudited                Audited
                                                           as at              as at                  as at
                                                     31 May 2014        31 May 2013            30 November
                                                                                                      2013
                                                             GBP                GBP                    GBP
Current Assets                                                                         
Debtors                                                   11,807             13,839                  9,057
Cash at bank and in hand                                 703,602            741,054                727,503
                                                         -------            -------                -------
                                                         715,409            754,893                736,560
Creditors                                                                              
Amounts falling due within one year                       (7,520)            (1,540)                (4,822)
                                                         -------            -------                -------
Net assets                                               707,889            753,353                731,738
                                                         -------            -------                -------
Capital and reserves                                                                   
Called up share capital                                  805,000            805,000                805,000
Other reserves                                            21,890             16,286                 20,109
Profit and loss account                                 (119,001)           (67,933)               (93,371)
                                                         -------            -------                -------
Equity shareholders' funds                               707,889            753,353                731,738
                                                         =======            =======                =======


CASH FLOW STATEMENTS FOR THE SIX MONTHS ENDED 31 MAY 2014
                                                     

                                                      Unaudited          Unaudited                Audited        
                                                 6 months ended       Period ended           Period ended
                                                    31 May 2014        31 May 2013            30 November  
                                                                                                     2013
                                                            GBP                GBP                    GBP
                                                                                    
Cash outflow from operating activities                  (24,260)           (64,299)               (78,219)
                                                                                     
Returns on investment and servicing of                                              
finance
Interest received                                           359                353                    722
                                                                                    
Financing activities                                                                
Issue of shares                                               -            805,000                805,000
                                                         ------            -------                -------
Cash (decrease)/increase in the period                  (23,901)           741,054                727,503
                                                         ======            =======                =======




NOTES TO THE INTERIM ACCOUNTS


1.    ACCOUNTING POLICIES

      Basis of preparation

      The  unaudited  interim  report,  which has not been reviewed by  the  company's  auditors  has  been
      prepared  in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally
      Accepted  Accounting  Practice), which have been applied consistently (except as  otherwise  stated).
      The  interim report has been prepared using accounting polices consistent with those set out  in  the
      Company's  Annual  Report and Accounts for the period ended 30 November 2013 and  do  not  constitute
      statutory accounts as defined in section 435 of the Companies Act 2006.
      
      The  financial information for the period from incorporation on 29 November 2012 to 30 November  2013
      has  been  extracted  from the audited accounts for that period, which have  been  delivered  to  the
      Registrar of Companies and received an unqualified audit opinion.
      
      The  Directors  are  of  the opinion that the financial information should be  prepared  on  a  going
      concern basis, in the light of the Company's financial resources.
      
      The interim report for the six months to 31 May 2014 was approved by the Board on 28 August 2014.
      
           
2.    LOSS PER SHARE
                                                                                                      Audited
                                                           Unaudited           Unaudited         Period ended
                                                      6 months ended           Period to          30 November
                                                         31 May 2014         31 May 2013                 2013
                                                               Pence               Pence                Pence
                                                                                             
       Loss per ordinary share                                                              
       - basic                                                (0.003)             (0.025)              (0.017)
                                                              ------              ------               ------
                                                                                             
                                                                 GBP                 GBP                  GBP
                                                                                             
       Loss for period                                      (25,630)             (67,933)             (93,371)
                                                             ------               ------               ------
                                                                                             
                                                                                             
       Weighted number of shares in issue:                                                                     
                                                             Number               Number               Number
                                                                                             
       - basic                                          805,000,000          269,158,098          535,615,000
                                                        ===========          ===========          ===========



3.      RECONCILIATION OF OPERATING LOSS TO NET OUTFLOW FROM OPERATING ACTIVITIES


                                                                              Unaudited             Audited
                                                           Unaudited          Period to           Period to
                                                         6 months to             31 May         30 November
                                                         31 May 2014               2013                2013
                                                                 GBP                GBP                 GBP
                                                                                           
    Operating loss                                           (25,989)           (68,286)            (94,093)
    Share based payments                                       1,781             16,286              20,109
    Net increase in debtors                                   (2,750)           (13,839)             (9,057)
    Net increase in creditors                                  2,698              1,540               4,822
                                                              ------             ------              ------
    Net cash outflow from operating activities               (24,260)           (64,299)            (78,219)
                                                              ======             ======              ======


4.  Share based payments
    During  the  period,  the  Company had one share-based payment arrangement,  which  was  a  share  warrant
    consisting of 2 tranches granted to the directors, enabling the warrant holders to each obtain 5%  of  the
    Company's share capital on exercise.
      
    At 31 May 2013, 10% of the share capital of the Company represented 80,500,000 shares.

                                                                            Tranche 1            Tranche 2

    Date of grant                                                       29 April 2013        29 April 2013
    Share price at grant date                                                   0.10p                0.10p
    Exercise Price                                                              0.10p                0.13p
    Number granted ('000)                                                      80,500               84,525
    Contractual life                                                          5 years              5 years
    Estimated fair value of each share warrant                                  0.04p                0.03p

    The estimated fair values above were calculated by applying a Black-Scholes option pricing model.

    The model inputs were:
      
    Expected volatility                                                                               60%
    Expected dividends                                                                                Nil
    Estimated contract life                                         3 years from grant date for Tranche 2
    Risk-free interest rate                                                                         0.39%
                                                                                                          
    Historical  volatility  was estimated at 60 per cent, which includes the early years  of  the  Company's
    life; the Company expects the volatility of its share price to reduce as it matures.

    A  total  share based payment charge of GBP 1,781 (November 2013: GBP 20,109; May 2013: GBP 16,286)  has
    been expensed in the period in respect of the warrants issued.

    The number of warrants outstanding at 31 May 2014 was as follows:
      
                       At 30 
                         Nov                                At 31 May 
      Date of           2013       Issued                        2014     Exercise Price     Exercisable on
      Issue           ('000)       ('000)     Lapsed           ('000)          per share          or before
      -----------------------------------------------------------------------------------------------------                                                                                                     
      29.04.13       80,500            -           -           80,500              0.10p           29.04.18
      29.04.13       84,525            -           -           84,525              0.13p           29.04.18
      -----------------------------------------------------------------------------------------------------
                    165,025            -           -          165,025                                      
      -----------------------------------------------------------------------------------------------------


5.  The ultimate beneficial owners are the directors at 31 May 2014.


6.  Copies  of  this interim statement are available from the Company at its registered office at Finsgate,
    5-7 Cranwood Street, London EC1V 9EE.

Contact Information

  • Chalkstream Investment Company plc