Tower Gate Capital Limited

September 03, 2010 11:11 ET

Trading update for the quarter to 30 June 2010

3 September 2010

                                        TOWER GATE CAPITAL PLC
                            TRADING UPDATE FOR THE QUARTER TO 30 JUNE 2010

The Board is pleased to announce that the first quarter of this financial year has been a success for
the Company.

    1.      Operating Activity

We have had an operationally profitable first Quarter and this continues into the current Quarter.
Revenue is up, and much of it is made up of income streams that will continue for the rest of the

    2.      Re-financing

The Company reached agreement with Matthew Hudson's family ("the Lender") in re-financing the
Company's secured loans that became due, and also for Lender putting in further money.

The terms of this re-financing are:

    *       Lender lent further sums to the Group to clear outstanding trading and other debts
    *       All interest due to Lender for the previous financial year was waived
    *       Repayment was extended to 1 January 2012, subject to the existing earlier repayment conditions
    *       Lender acquired 545 shares in AUE owned by Tower Gate Capital at last round price
    *       Lender agreed to subscribe for 1m shares in Tower Gate Capital PLC at 11p per share - in turn
            these shares will be re-assigned to the Tower Gate Capital team and others - Directors receiving in
            lieu of other compensation: Matthew Hudson 300,000 shares, Tim Hudson 275,000, Patrick Kealy 100,000,
            and Matthew's family 300,000
    *       Lender has been granted a warrant to subscribe up to a further 1.5m shares in Tower Gate
            Capital PLC, exercisable in whole or in part over the next 2.5 years at 11p per share.

    3.      Restructuring

Matthew Hudson has become part time executive, to lead the Company through to the next stage of its
development and has taken on the CEO role, as well as Chairman.

We have recently brought in Shahram Shoraka as a director of our FSA subsidiary. Shahram is an ex
Lehman and Straumar banker and will help us lead on new corporate finance activities.

We are restructuring the Group along new business lines.

    4.      Directors

Two of our directors have resigned, as other activities pulled them away from the Company. We thank
Piers Linney and Michael Wright for their service and support. Both of them will continue to add value
to and find opportunities for the Company going forwards.

The current directors are Matthew Hudson, Tim Hudson and Patrick Kealy.

    5.      New Mandates

We have won new mandates, as activity picks up.

    6.      Private Equity Investments

Our Two largest investments made increased strides.

Our oil company Anglo Ukraine Energy (AUE) is in oil production, and is shortly to invest further sums
in bringing other wells into production in Crimea. It is also bidding for further fields.

Our software investment, m-Centric, continues to have success on the pitch of its sports fan base
"twitter-like" product, signing up 3 Portuguese premier football clubs. It is also in discussion with
other Clubs, and also leagues and organisations. Its landmark Real Madrid fan base product now has
over 250,000 users.

    7.      Audit

We aim to issue shortly our audited accounts for the year ended 31 March 2010.

    8.      Litigation

We settled the Medoco oil pipeline litigation. This cost money to settle, but drew a line under
spiralling legal costs, which badly hit our last year financial results.

    9.      Prospects

The Board very much looks forward to the rest of the financial year, and is very optimistic about the
Company's prospects.

The Board accepts responsibility for the content of this announcement

Contact Information

  • Tower Gate Capital Limited