Tower Gate Capital Limited
LSE : TGCP

August 31, 2010 11:07 ET

Preliminary results for the year ended 31 March 2010

31 AUGUST 2010

                                              TOWER GATE CAPITAL PLC
                                                         
                          UNAUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2010

Tower Gate Capital PLC ("the Company") announces unaudited preliminary results for the year ended 31 March 2010.

CHAIRMAN'S STATEMENT

The last financial year ended 31 March 2010 was a hard and slow year for the Group.

Very  few  investment or M&A transactions closed in Europe or the US generally, and the financial crisis was  still
evident. As a result, we won very few mandates, and we made no new investments.

On  the  advisory  side,  the  income generated from this side of the business was  very  modest  at  around  £94k,
reflecting the very difficult market conditions under which we have been operating.

However,  some  of  our portfolio companies showed continued improvement, and noticeably our oil investment,  Anglo
Ukraine  Energy, which continued to increase its oil production, and mCentric, our Spanish based wireless  software
company,  which continued to develop its MyClub "twitter for sports fans" product.  At 31 March 2010, the  carrying
value  of  these  investments amounted to £2,019,728 and £1,318,042 respectively, and our investment  portfolio  in
total showed a solid increase in asset value to £3,543,744 compared to £3,155,764 at the start of the year.  Of the
net  movement  of £387,980, £392,726 was achieved by revaluation gains, which have been credited to  a  revaluation
reserve.  We  follow  a  prudent  policy of only recognising surpluses through the profit  and  loss  account  when
realised.

The  enhanced  value  of  the investment portfolio was however diluted by our operating performance  for  which  we
suffered  a  group  loss of £649,462. This was exaggerated by the losses caused by the litigation  surrounding  the
Middle Eastern oil pipe venture, Medoco. This litigation is now settled. We settled the case as we felt that it was
more  important to draw a line under the spiralling legal costs and huge time distraction of a legal case that  had
gathered a life of its own.

On the finance side, the Group continued to rely during the financial year on the secured loan note from my Family.
At  the  year end, the loan principal was £2,236,994 (2009: £1,619,983) together with accrued interest of  £272,309
(2009: £272,309). No interest was charged in 2010, its having been waived to help contain the Group's losses.

At  31  March 2010, the Group's net assets were £297,412 compared to £497,056 at the end of 2009: The net reduction
of  £199,644  is  reconcilable as to the loss for the year of £649,462 less the upward revaluation in  the  Group's
investments of £392,726, and the proceeds from new shares issued during the year of £57,092; total £199,644.

Notwithstanding  2010  being another difficult year in what are difficult times generally, we  continue  to  remain
positive about Tower Gate Capital's future prospects and are confident that 2011 will see a turning point.
Being  small  and  nimble, flexible and tightly controlled, we remain open for new opportunities, and  continue  to
actively explore new mandates and investment opportunities.


Mr M Hudson
Chairman
31 August 2010


The  Auditors have not yet completed their audit of the annual results however the Board believes that it is likely
that they will give an opinion which includes an emphasis of matter regarding the Group's ability to continue as  a
going  concern,  in  line  with the previous year. The Group continues to be supported by Matthew  Hudson  and  his
family.





TOWER GATE CAPITAL PLC
UNAUDITED PRELIMINARY RESULTS

GROUP PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2010

                                                                                  UNAUDITED               AUDITED
                                                                                 YEAR ENDED            YEAR ENDED
                                                                                   31 MARCH              31 MARCH
                                                                                       2010                  2009
                                                                                        GBP                   GBP
                                                                                                                 
Turnover                                                                             94,136               151,692
Net losses arising from fix asset investments                                      (51,097)             (483,866)
Gross (loss)/profit                                                                  43,039             (332,174)
Administrative expenses                                                           (298,612)             (712,630)
Exceptional item - Medoco settlement                                              (395,544)                     -
Operating Loss                                                                    (651,117)           (1,044,804)
Interest receivable and similar income                                               11,958                 9,601
Interest payable and similar charges                                               (10,303)             (149,629)
Loss on ordinary activities before taxation                                       (649,462)           (1,184,832)
Taxation                                                                                  -                     -
Loss on ordinary activities after taxation                                        (649,462)           (1,184,832)
Loss per share                                                                                                   
Basic (pence)                                                                       (2.80p)               (5.21p)
Diluted (pence)                                                                     (2.76p)               (5.02p)





GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2010

                                                                                 UNAUDITED               AUDITED
                                                                                YEAR ENDED            YEAR ENDED
                                                                                  31 MARCH              31 MARCH
                                                                                      2010                  2009
                                                                                       GBP                   GBP
                                                                                                                
Loss for the financial year                                                      (649,462)           (1,184,832)
Unrealised surplus on fixed asset investments                                      392,726             1,552,182
Unrealised losses on fixed asset investments                                             -             (355,249)
                                                                                                                
Total recognised (losses)/gains relating to the year                             (256,736)                12,101
                                                                                                                

GROUP NOTE OF HISTORICAL COST PROFITS AND LOSSES
FOR THE YEAR ENDED 31 MARCH 2010

                                                                                 UNAUDITED               AUDITED
                                                                                YEAR ENDED            YEAR ENDED
                                                                                  31 MARCH              31 MARCH
                                                                                      2010                  2009
                                                                                       GBP                   GBP
                                                                                                                
Reported loss for the financial year                                             (649,462)           (1,184,832)
                                                                                                                
Realisation of investment revaluation gains of previous                                  -                     -
years
                                                                                                                
Historical cost loss for the financial year                                      (649,462)           (1,184,832)

GROUP BALANCE SHEET
AS AT 31 MARCH 2010

                                                                                UNAUDITED                AUDITED
                                                                                    AS AT                  AS AT
                                                                                 31 MARCH               31 MARCH
                                                                                     2010                   2009
                                                                                      GBP                    GBP
                                                                                                                
FIXED ASSETS                                                                                                    
Tangible assets                                                                     3,790                  7,016
Investments                                                                     3,543,744              3,155,764
                                                                                3,547,534              3,162,780
CURRENT ASSETS                                                                                                  
Debtors                                                                           101,848                 85,821
Cash at bank and in hand                                                            5,005                 10,627
                                                                                  106,853                 96,448
Creditors-amounts falling due within one year                                 (1,119,981)              (692,189)
NET CURRENT LIABILITIES                                                       (1,013,128)              (595,741)
TOTAL ASSETS LESS CURRENT LIABILITIES                                           2,534,406              2,567,039
                                                                                                                
Creditors - amounts falling due in more than one year                         (2,236,994)            (1,619,983)
Provisions for liabilities                                                              -              (450,000)
NET ASSETS                                                                        297,412                497,056
                                                                                                                
CAPITAL AND RESERVES                                                                                            
Called up share capital                                                           116,554                115,222
Share Premium Account                                                              55,760                      -
Revaluation Reserve                                                             1,981,013              1,588,287
Profit & Loss Account                                                         (1,855,915)            (1,206,453)
                                                                                                                
SHAREHOLDERS' FUNDS                                                               297,412                497,056

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.

                                                                                UNAUDITED                AUDITED
                                                                               YEAR ENDED             YEAR ENDED
                                                                                 31 MARCH               31 MARCH
                                                                                     2010                   2009
                                                                                      GBP                    GBP
                                                                                                                
Loss per share (pence)                                                                                          
Basic                                                                             (2.80p)                (5.21)p
Diluted                                                                           (2.76p)                (5.02)p
                                                                                                                
Loss                                                                                                            
Loss attributable to the equity holders of the Company                          (649,462)            (1,184,832)
                                                                                                                
Number of shares                                                                   Number                 Number
Basic weighted average number of shares in issue                               23,167,706             22,760,315
Diluted weighted average number of shares in issue                             23,520,946             23,603,012



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

                                                     --ENDS--


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