RNS Number:9776V
Abraxus Investments PLC
22 December 2005
22 December 2005
Abraxus Investments PLC
Interim Results
for the six months ended 30 September 2005
Chairman's Statement
I am pleased to announce the interim results for the six months ended 30
September 2005. All comparatives are for the six months ended 30 September 2004.
Financial Results:
Turnover for the period was nil (2004 - nil) with a loss on ordinary activities
before taxation of #218,389 (6 months ended 30 September 2004 - loss #274,599).
The Board is not recommending the payment of a dividend. At 30 September 2005,
the Group had net assets of #1,762,967 (30 September 2004: #1,593,876)
equivalent to 5p per share (30 September 2004: 6p per share).
Development of Budapest Hotel
The building at Podmaniczky u. 45in Budapest, 6. is in a busy street on the Pest
side, on the corner of Vorosmarty Street and Podmaniczky Street. It is close to
the West Railway Station and the biggest Shopping Centre (West End Centre) of
Budapest, in the 6th district, with direct connection by the Ferdinand Bridge
with the 13th district. It was built at the end of the 19th century for the
Hungarian freemasons and has approximately 5,409 m2. It is a listed building,
but permission has been obtained to change internal areas, except the staircase
and other specific elements. At present, the property has a valid building
permit for the planned 80 room hotel.
I am delighted to report that all works being carried out are on time and within
budget. The hotel is provisionally scheduled to open in December 2006 and the
Board is currently reviewing a number of interior design proposals. We are
delighted with the development of this prominent building which marks the first
step in the transformation and expansion of the Company's development
activities.
Extraordinary General Meeting
An Extraordinary General Meeting of the Company was requisitioned by Langdale
Overseas Property Services PLC acting through its nominee Pershing Keen Nominees
Limited, which held 18.65% of the issued share capital of the Company. The
meeting was held on 4 July 2005 and the resolutions proposed were to remove all
the current directors and to appoint three new directors. All resolutions were
rejected by shareholders. Whilst I can understand some frustration amongst
shareholders at the delay in the implementation of the strategy, I feel that it
is vital to spend the necessary time and due diligence in order to invest in the
right opportunities. I am pleased to say that the Budapest acquisition is such
an opportunity and that a substantial majority of the shareholders supported the
Board's composition and existing strategy.
At the meeting, it was confirmed that, following the acquisition of the property
in Budapest, the Company had entered into an agreement with a company connected
with Mr Uri Heller for project management of the proposed development. The
Directors, other than Mr Heller, consider, having received an opinion from the
Company's nominated adviser, that the terms of the transaction are fair and
reasonable insofar as the Company's shareholders are concerned.
Strategic Review:
The acquisition and development of the hotel detailed above marks the first step
in the transformation and expansion of the Company's development activities. The
Board remain committed to its strategy of identifying international commercial
property development and investment opportunities that show an expectation of
higher than average returns. We are currently focusing on Central and Eastern
Europe, where opportunities remain attractive and there is strong potential for
capital growth. To take advantage of these opportunities the directors are
considering raising further equity to strengthen the capital base of your
company.
Conclusion:
Following the first acquisition in Budapest, I look forward to the continued
implementation of the Company's strategy with great optimism. I would like to
take this opportunity to thank shareholders for their patient support in what
has been a transitional time for the Company and to assure them that we aim to
reward their patience by delivering increased shareholder value in the coming
years.
David Sparks
Chairman
Abraxus Investments PLC
Profit and Loss Account
for the six months ended 30 September 2005
Unaudited 6 m/e Unaudited 6 m/e Audited
Year ended
30-Sep-05 30-Sep-04 31-Mar-05
Turnover - - -
Cost of sales - - -
Gross profit - - -
Administrative expenses (230,395) (47,999) (208,626)
Operating Loss (230,395) (47,999) (208,626)
Exceptional item - (258,677) (285,551)
Interest receivable and similar income 14,165 32,077 62,710
Loss on ordinary activities before taxation (216,230) (274,599) (431,467)
Tax on profit on ordinary activities - - -
Loss on ordinary activities after taxation (216,230) (274,599) (431,467)
Minority interest - - -
Retained loss for the period (216,230) (274,599) (431,467)
Abraxus Investments PLC
Balance Sheet
as at 30 September 2005
Unaudited Unaudited Audited
6m/e 6m/e year ended
30-Sept-05 30-Sept-04 31-Mar-05
Fixed assets
Tangible fixed assets 966,364 - 929,606
Investments
Current assets
Debtors 25,250 - 181,194
Cash at bank and in hand 896,284 1,744,519 1,073,472
921,534 1,744,519 1,254,472
Current liabilities (124,931) (150,643) (205,075)
Net current assets 796,603 1,593,876 1,049,591
Total assets less current liabilities 1,762,967 1,593,876 1,979,197
Creditors - amounts falling due after
one year
Loans
Deferred rent - - -
Provisions for liabilities and charges - - -
Net assets 1,762,967 1,593,876 1,979,197
Capital and reserves
Called up share capital 1,722,222 1,311,472 1,722,222
Share premium 7,435,193 7,303,754 7,435,193
Profit and loss b/f (7,394,448) (7,021,350) (7,178,218)
1,762,967 1,593,876 1,979,197
Abraxus Investments PLC
Unaudited Consolidated Cashflow
for the six months ended 30 September 2005
Unaudited Unaudited
6m/e 6m/e
30-Sep-05 30-Sep-03
Net cash inflow/(outflow) from operating
activities (156,754) (283,147)
Returns on investment and servicing of
finance
Interest received 14,165 32,077
Cash (outflow)/inflow before financing (142,489) (251,070)
Capital expenditure and financial investment (36,758) -
Management of liquid resources - -
Financing - -
Movement in net funds in the period (177,188) (251,070)
Net funds at the start of the period 1,073,472 1,995,589
Net funds at the end of the period 896,284 1,744,519
Unaudited Consolidated Cashflow Note
for the six months ended 30 September 2005
Reconciliation of operating loss to operating
cashflows
Operating loss (232,554) (306,676)
Depreciation - -
Decrease in debtors 155,944 22,041
Increase/(Decrease) in creditors (80,144) 1,488
Net cash outflow from operating activities (156,754) 283,147
The interim results have been prepared in accordance with applicable United
Kingdom accounting standards, using the historical cost convention. The
financial information for the half year ended 30 September 2005 was approved by
the Board on 22 December 2005. The financial information contained in this
report does not constitute statutory accounts for the group for the relevant
periods. The interim report is not audited, nor has it been reviewed by the
auditors. The results for the year ended 31 March 2005 have been extracted from
the Annual Report and Accounts which received an unqualified auditor's report
that did not contain a statement under section 237(2) or (3) of the Companies
Act 1985, and have been delivered to the Register of Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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