TIDMORA
RNS Number : 8047M
ORA Capital Partners Ltd
21 September 2012
21 September 2012
ORA Capital Partners Limited
("ORA" or "the Company")
Interim results for the six months ended 31 July 2012
ORA Capital Partners Limited (AIM: ORA), the Guernsey based
company involved in the growth and development of businesses,
announces its unaudited financial results for the six months ended
31 July 2012.
Highlights:
-- Loss after tax for the six months of GBP1.7 million (6 months
to 31 July 2011: GBP3.1 million)
-- Net assets of GBP85.4 million (31 January 2012: GBP92.7 million)
-- Net assets per share of 178.4p (31 January 2012: 178.1p)
-- Cash balances of GBP0.5 million (31 January 2012: GBP2.0 million)
-- Realisation of GBP4.1 million proceeds on investment portfolio disposals
-- Buy-back and cancellation of 4.2 million ordinary shares at a cost of GBP5.6 million
Commenting on the results, Richard Griffiths, Executive
Chairman, stated, "Continued uncertainty in financial markets had a
further adverse impact on the carrying values of ORA's quoted
strategic portfolio business holdings. Looking ahead, there is
reason for continued caution in the near term as economies remain
vulnerable to Europe's debt crisis and the economic recovery in the
US remains tenuous. However, this environment is also adversely
affecting the valuations of many good businesses and we will,
therefore, continue to maintain a rigorous and highly selective
investment approach with a view to exploiting opportunities as they
emerge. We will also retain the management disciplines and
shareholder alignment around which the Company was founded, whilst
running a low cost base. I am confident that this approach will
enable us to build considerable value for shareholders going
forward."
A copy of the Interim Report for the six months ended 31 July
2012 is being posted to shareholders and is available on the
Company's website at www.oracp.com.
Enquiries:
ORA Capital Partners Limited
Richard Griffiths - Executive Chairman
Michael Bretherton - Finance Director +44 (0)1481 738724
---------------------------------------- -------------------
Smith & Williamson Corporate Finance
Limited
Azhic Basirov
Siobhan Sergeant +44 (0)20 7131 4000
---------------------------------------- -------------------
CHAIRMAN'S STATEMENT
Continued uncertainty in financial markets during the six months
ended 31 July 2012 had a further adverse impact on the carrying
values of ORA's quoted strategic portfolio business holdings. As a
result, the Group incurred a loss after tax of GBP1.7 million for
the period compared with a loss of GBP3.1 million in the previous
2011 half year.
The reported loss mainly reflects unrealised revaluation losses
on portfolio and trading investments and is despite the benefit of
further investment portfolio disposals which generated cash
proceeds of GBP4.1 million. These disposals realised an overall
profit of GBP2.8 million of which GBP0.3 million arose as a profit
in the period, with the balance previously recorded as unrealised
gains in earlier periods.
Despite these difficult capital market conditions, the principal
trading companies within our business portfolio continued to make
good progress in their development as more fully described in the
Business portfolio update given below.
During the period, the Group spent GBP2.7 million on the
purchase of additional portfolio investments as well as another
GBP1.8 million that was initially treated as a trading investment
but which was later transferred to strategic portfolio business
holdings in respect of holdings where ORA has an aspiration to own
the shares for at least the medium term. In addition, the Company
also spent GBP5.6 million on the buy-back and cancellation of a
further 4.2 million shares in ORA.
Net assets attributable to holders of ORA at 31 July 2012 were
GBP85.4 million (equivalent to 178.4p per share) compared with
GBP92.7 million (equivalent to 178.1p per share) at the 31 January
2012 year end. The small increase in net assets per share reflects
the lower share capital base as reduced by share buy-backs, share
cancellations and cancellation of treasury shares, partially offset
by the performance loss reported for the period.
At 31 July 2012, ORA had 14 portfolio businesses of which 12 are
quoted on AIM and the remaining 2 are unquoted. The carrying value
of strategic portfolio business holdings at 31 July 2012 was
GBP76.2 million, of which GBP73.2 million was represented by quoted
holdings and GBP3.0 million by unquoted holdings.
Business portfolio update
An overview of the activities of the portfolio businesses in
which ORA has a holding of 15 per cent. or more (subject to a
minimum carrying value of GBP1.0 million) or for which the carrying
value is in excess of GBP5.0 million, is given below.
Nanoco Group Plc (Nanoco) is a leading AIM listed nanotechnology
company involved in the development and manufacture of fluorescent
semi-conducting materials called quantum dots with the ability to
emit intense light of a specific colour. Nanoco is focussing on key
markets covering LED lighting, displays and solar cells, where
quantum dots deliver significant benefits including reduced power
consumption, improved performance, lower manufacturing costs and
product miniaturization. The company has entered into strategic
partnerships with three major Asian corporations to develop quantum
dot based LEDs for use as a backlight in LCD displays and has also
signed a joint development agreement with another major Japanese
corporation for the development of a solar photovoltaic
nanomaterial film. Nanoco'sexisting commercial agreements are
proceeding well and the company recently delivered a 1kg batch of
green cadmium-free quantum dots to a Japanese customer, attracting
a US$2 million milestone payment. Manufacturing in-house is central
to Nanoco's business model owing to the value that control of the
supply chain can bring and the company is progressing its plans to
expand infrastructure and manufacturing scale-up in order to
accommodate increasing levels of activity. Nanoco is well
capitalised and held cash balances of GBP14.4 million at 31 January
2012. ORA retains a holding of 18.9 per cent. in Nanoco.
Tissue Regenix Group Plc (TRG) is an AIM listed company which
aims to commercialise the production of biocompatible regenerate
implants using human or animal tissue that is decellularised under
its proprietary platform dCELL(R) Technology process. When these
are implanted into the body, they are repopulated with the
patient's own cells without the use of anti-rejection drugs. The
potential applications of this process are diverse and address many
critical clinical needs in cardiac, vascular, orthopaedic and
dermis. TRG's dCELL(R) Technology has been validated by the
development of its dCELL(R) Vascular Patch product through to CE
regulatory approval and the company is now progressing development
programmes to leverage this innovative technology platform. These
include its meniscus knee repair project, a human donor heart valve
product and an advanced wound care human skin product, as well as a
porcine heart valve product and further applications of its
vascular patch. During the half year, the company expanded its
development agreement with NHS Blood and Transplant which will
enable TRG to fast-track clinical evaluations of additional
dCELL(R) human tissue applications.TRG held cash balances of
GBP28.0 million at 31 January 2012, which provides the funding to
develop the above range of products simultaneously and accelerate
the commercialisation of this potential product pipeline. At 31
July 2012, ORA held 19.8 per cent. of the issued share capital of
TRG.
Obtala Resources Limited (Obtala) is a Guernsey based and AIM
listed holding company of a natural resources exploration and
development group. Obtala's principal interests are in
self-sustainable forestry and agriculture through its Montara
Continental Limited (Montara) 75.0% subsidiary, diamond exploration
and production through its AIM listed Paragon Diamonds Limited
(Paragon) 45.5% subsidiary, as well as exploration and development
of mineral resource assets, including iron ore and tin through its
significant 46.0% shareholding in AIM listed Bushveld Minerals
Limited (Bushveld). Montara's first timber contract to supply
wooden railway sleepers to the Mozambican railway authorities is
now profitable and employing over 300 workers and the company is
continuing to build its order book for sawn hardwoods. Montara has
also completed harvesting of its maiden trial crop on its farm land
in southern Tanzania and phase-2 farm expansion planning is now
underway. Paragon's core activities centre on two diamondiferous
kimberlites located in Lesotho. The company recently announced that
it had secured a US$ 10.0 million finance facility which is
sufficient to bring its Motete Dyke project into full production in
2013. Since listing on AIM in March 2012, Bushveld has made good
progress undertaking further studies and test work to expand the
know resource on its Mokopane iron and tin assets in the Limpopo
Province of South Africa. ORA's holding in Obtala reduced from
19.9% to 14.1% at 31 July 2012, reflecting share disposals by ORA,
coupled with dilution resulting from Obtala's acquisition of
Bushveld.
Oxford Advanced Surfaces Group Plc (OAS) is an AIM listed
company that develops and commercialises advanced materials and
technology solutions using its patented VISARC(TM) nanoparticle and
Onto(TM)reactive chemistry surface modification technologies. The
first half of the year has seen success in OAS's commercial
endeavours resulting in its first VISARC(TM) anti-reflective
coating (ARC) joint development agreement, scale-up of the
company's key silica nanoparticle behind the VISARC(TM) technology
and shortly thereafter the announcement of a new Chief Executive
Officer who will join on 1 October. The VISARC(TM) ARC technology
has several applications including display screens, solar cells and
ophthalmic lenses for eyewear. The displays market has been an
early adopter of ARCs for televisions through to the current
introduction of ARCs for mobile devices and OAS is working closely
with a number of major potential licensees in this field. OAS has
also continued to develop the key technologies within Onto(TM) ,
which is a highly reactive chemistry proprietary to OAS. The
company is currently focussing attention on the Onto(TM)XL
cross-linking technology which delivers both surface
functionalisation and inter-layer adhesion. OAS held cash balances
of GBP5.8 million at 31 December 2011. ORA's holding in OASat 31
July 2012 was 25.5 per cent.
Plant Health Care Plc (Plant Health) offers naturally based
biological products to improve the health, vigor, and yield of
major field crops such as corn, soybeans, cotton, rice, and
tobacco, as well as specialty crops such as fruits, vegetables and
citrus. Many of these products use Harpin Protein Technology to
trigger growth and self-defense mechanisms within the plants,
stimulating more robust plant health and fruiting, which increases
yield. In addition, Plant Health has a Myconate Technology which
works by stimulating the colonization of plant roots by beneficial
micro-organisms called mycorrhizal fungi and enabling each plant to
draw more nutrients and moisture out of the soil. Years of trials
and now farmers' practical experience in the field have
demonstrated that Plant Health's products offer significant yield
enhancement in many important crops. The need for these products
has never been greater with world population growth and increasing
prosperity leading to demand for more and better food. The
traditional agrochemical industry is now looking to biological
products as important complements to their product offering and
Plant Health has already formed partnerships with a number of the
leading agrochemical companies including Monsanto, Direct
Enterprises Inc. and Arysta Life Science. The company aims to build
these into successful commercial partnerships in order to leverage
their distribution strength globally. Plant Health continues to
have no debt and held cash and investments of $10.2 million at 30
June 2012. ORA's holding in Plant Healthat 31 July 2012 was 17.1
per cent.
Silence Therapeutics Plc (Silence) possesses one of the most
comprehensive and sophisticated RNAi (Ribo Nucleic Acid
interference) therapeutic platforms. RNAi is a natural phenomenon
which can be used to selectively turn off the genes expressed in
some diseases and thereby target the prevention of certain proteins
involved in those diseases. Silence possesses a pipeline that
includes a total of 5 different internal and partnered programs in
phase II or phase I clinical trials covering treatment of vision
loss through macular degeneration, acute kidney injury and solid
tumour cancer growth. In addition, the company has 3 early stage
programs covering acute lung injury and liver cancer. The
partnerships with companies such as AstraZeneca, Pfizer/Quark
Pharma and Dainippon Sumitomo demonstrate the credibility of
Silence's technologies. In July 2012, the company raised GBP5.4
million by way of a share issue and issue of a convertible loan
note and also announced the establishment of a GBP10.0 million
Equity Finance Facility. ORA held 22.5 per cent. of the issued
share capital of Silence at 31 July 2012.
Antisoma Group Plc (Antisoma) was founded as a biomedical
company but following the discontinuation of key clinical trials in
early 2011, all investment in the Group's clinical development
programmes was ceased and overheads reduced to a minimum in order
to preserve cash resources. The company's shareholders subsequently
approved proposals to cancel Antisoma's listing on the Official
List and to seek admission to trading of its shares on AIM. The
company was admitted to AIM in January 2012 as an Investing company
with an investing strategy under which the Board intends the
company to be an active investor and to assist in the strategic
development and growth of any significant acquisitions and/or
investments it makes. Antisoma held cash balances of GBP13.6
million at 31 December 2011. ORA's holding in Antisoma at 31 July
2012 was 29.4 per cent.
East Balkan Properties Plc (EBP) is an AIM listed investment
company focussing on commercial, retail and industrial property in
the Balkan region. It is currently not making new investments, but
is seeking to dispose of the majority of its investments. EBP's
principal investments are a 40 per cent. equity interest in
Glorient Investment BG (Glorient) and a 100 per cent. interest in
Equest Logistics Centre SRL (Equest). Glorient is a property
company which owns and develops large retail sites across Bulgaria.
It owns 35 large stores and 13 development sites. Equest is the
owner of a logistics park located in Romania on the outskirts of
Bucharest consisting of three purpose built warehouses which
between them are divided into 40 units. EPB also has interests in a
number of other commercial, retail and industrial property
interests in Romania and to a lesser extent in Serbia and Slovakia.
The Board of EBP is considering whether to remain AIM quoted or to
de-list. At 31 July 2012, ORA held 29.9 per cent. of the issued
share capital of EBP.
Oxford Pharmascience Group Plc (OXP) is an AIM listed company
that has a portfolio of pharmaceutic technologies which allows it
to effectively "re-develop" existing drugs. During the half year,
revenues from its OXPchew(TM) technology continued to grow with
strong sales from Aché, one of Brazil's largest pharmaceutical
companies, and importantly the company signed its first OXPchew(TM)
licensing deal with a major global pharmaceutical company, Bayer.
In addition, OXP commenced co-development work with Hermes Pharma
for a range of ibuprofen direct to mouth granules using OXPzero(TM)
taste masking/zero burn technology. This will result in clinical
studies later this year to demonstrate the bio-equivalence of its
OXPzero(TM) ibuprofen salt, a major step towards securing the first
licensed medicine using the technology. OXP also announced that it
had signed an exclusive global license from The School of Pharmacy,
University of London, with the intention to develop and
commercialise a range of lower dosage 'safer' formulations of
Simvastatin and Atorvastatin which will have the equivalent
existing high dose effect . This moves the company into an area
with potential for exponential growth as Statins are the leading
drugs used to combat cardiovascular disease but concerns remain
about potential side effects of using statins at higher doses, a
problem which OXP's technology could eradicate. ORA's holding in
OXP at 31 July 2012 was 33.3 per cent.
Novum Securities Limited (Novum) was founded as a Financial
Services Authority authorised firm able to provide agency broking
and corporate finance advice to intermediate customers and market
counterparties. It subsequently broadened its profile to commence
trading in a principal capacity, assessing stocks and acting as a
market maker in UK domestic securities. Novum is now a profitable
independent stockbroking house focused on the UK securities market
and which specialises in providing discrete and highly professional
sales and execution to institutional and high net worth clients
alongside market making and corporate finance to quoted and private
companies. At 31 July 2012, ORA held 43.4 per cent. of the issued
share capital of Novum.
Outlook
Looking ahead, there is reason for continued caution in the near
term as economies remain vulnerable to Europe's debt crisis and the
economic recovery in the US remains tenuous. However, this
environment is also adversely affecting the valuations of many good
businesses and we will, therefore, continue to maintain a rigorous
and highly selective investment approach with a view to exploiting
opportunities as they emerge. We will also retain the management
disciplines and shareholder alignment around which the Company was
founded, whilst running a low cost base. I am confident that this
approach will enable us to build considerable value for
shareholders going forward.
Finally, I would like to thank our employees and the managers of
our business portfolio companies for all their hard work and
commitment in the continued growth and development of the Group
during the period.
Richard Griffiths
Executive Chairman
20 September 2012
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 JULY 2012
Six Months to 31 Jul 12 Six Months to 31 Jul 11
(Unaudited) (Unaudited) Year to 31 Jan 12 (Audited)
GBP'000 GBP'000 GBP'000
---------------------------- ---------------------------- ---------------------------- ----------------------------
CONTINUING OPERATIONS
Loss on portfolio and
trading investment (1,132) (2,574) (20,861)
Revenue from services 38 34 73
---------------------------- ---------------------------- ---------------------------- ----------------------------
PORTFOLIO RETURN AND
REVENUE (1,094) (2,540) (20,788)
Administrative expenses (587) (562) (1,204)
---------------------------- ----------------------------
OPERATING LOSS (1,681) (3,102) (21,992)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Foreign exchange
gains/(losses) - 32 (63)
Finance income 3 6 11
Finance costs (45) (36) (80)
---------------------------- ---------------------------- ---------------------------- ----------------------------
LOSS BEFORE TAXATION (1,723) (3,100) (22,124)
Taxation - - (2)
---------------------------- ---------------------------- ---------------------------- ----------------------------
LOSS AND TOTAL
COMPREHENSIVE INCOME FOR
THE PERIOD (1,723) (3,100) (22,126)
ATTRIBUTABLE TO
Owners of the parent (1,723) (3,100) (22,126)
---------------------------- ----------------------------
(1,723) (3,100) (22,126)
---------------------------- ---------------------------- ---------------------------- ----------------------------
LOSS PER SHARE
Basic on loss for the
period (3.78) (5.20) (38.78)
Diluted on loss for the
period (3.78) (5.20) (38.78)
---------------------------- ---------------------------- ---------------------------- ----------------------------
There are no items of other comprehensive income.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 JULY 2012
Capital
redemption Share based payment
Share Capital reserve Merger reserve reserve Revenue reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ----------------------
At 31 January
2011 707 293 65,554 216 63,182 129,952
-------------- ---------------- ----------------- ----------------- ---------------------- ---------------- ----------------------
Net loss for
the period - - - - (3,100) (3,100)
Purchase of
shares for
cancellation (74) 74 - - (9,572) (9,572)
Cancellation
of treasury
shares (8) 8 - - - -
Share based
payments - - - 58 - 58
Purchase of
own shares - - - - (416) (416)
At 31 July
2011 625 375 65,554 274 50,094 116,922
-------------- ---------------- ----------------- ----------------- ---------------------- ---------------- ----------------------
Net loss for
the period (19,026) (19,026)
Purchase of
shares for
cancellation (42) 42 - - (5,279) (5,279)
Cancellation
of treasury
shares (5) 5 - - - -
Share based
payments - - - 57 - 57
Purchase of
own shares - - - - (2) (2)
At 31 January
2012 578 422 65,554 331 25,787 92,672
-------------- ---------------- ----------------- ----------------- ---------------------- ---------------- ----------------------
Net loss for
the period (1,723) (1,723)
Purchase of
shares for
cancellation (41) 41 (5,620) (5,620)
Cancellation
of treasury
shares (5) 5 - -
Share based
payments 53 - 53
At 31 July
2012 532 468 65,554 384 18,444 85,382
-------------- ---------------- ----------------- ----------------- ---------------------- ---------------- ----------------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2012
Six Months Six Months Year to
to 31 Jul to 31 Jul 31 Jan
12 (unaudited) 11 (Unaudited) 12 (Audited)
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Investment portfolio 76,196 84,540 76,395
Property, plant and equipment 28 57 42
76,224 84,597 76,437
------------------ ----------------- -------------------
Current assets
Trade and other receivables 211 151 3,215
Investments in trading securities 8,612 27,288 11,013
Derivative trading assets - 297 106
Cash and cash equivalents 517 5,039 1,995
9,340 32,775 16,329
------------------ ----------------- -------------------
TOTAL ASSETS 85,564 117,372 92,766
------------------ ----------------- -------------------
LIABILITIES
Current liabilities
Trade and other payables (129) (113) (84)
Current tax liabilities (10) (8) (10)
Derivatives trading liabilities (43) (329) -
(182) (450) (94)
------------------ ----------------- -------------------
NET ASSETS 85,382 116,922 92,672
------------------ ----------------- -------------------
EQUITY
Issued capital 532 625 578
Capital redemption reserve 468 375 422
Merger reserve 65,554 65,554 65,554
Share based payment reserve 384 274 331
Revenue reserve 18,444 50,094 25,787
Equity attributable to holders of parent 85,382 116,922 92,672
------------------ ----------------- -------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 JULY 2012
Six Months to 31 Jul 12 Six Months to 31 Jul 11
(Unaudited) (Unaudited) Year to 31 Jan 12 (Audited)
GBP'000 GBP'000 GBP'000
---------------------------- ---------------------------- ---------------------------- ----------------------------
Loss before tax (1,723) (3,100) (22,124)
Adjustment for non-cash
items:
Foreign exchange - (32) 20
Interest paid 45 36 80
Interest received (3) (6) (11)
Depreciation 14 15 30
Share base payment 53 58 115
Unrealised loss on
revaluation of portfolio
investment 4,477 6,334 24,774
Realised gain on disposal
of portfolio investments (277) (1,706) (1,456)
Realised loss/(gain) on
disposal of other trading
investments (640) 669 (673)
Unrealised gains on other
trading investments (1,667) (908) (523)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Operating cash inflow 279 1,360 232
Sale of portfolio
Investments 4,130 12,491 12,489
Purchase of portfolio
investments (2,691) (2,595) (4,248)
Purchase of trading
securities (2,541) (12,989) (18,196)
Sale of trading securities 1,958 7,719 21,130
Decrease/(increase) in
trade and other
receivables 3,004 1 (3,063)
Increase/(decrease) in
trade and other payables 45 6 (23)
Taxation over provision in
prior period - - (8)
Taxation paid/(refunded) - - 10
---------------------------- ---------------------------- ---------------------------- ----------------------------
Net cash generated from
operations 4,184 5,993 8,323
---------------------------- ---------------------------- ---------------------------- ----------------------------
INVESTING ACTIVITIES
Interest received (45) 6 11
Interest paid 3 (36) (80)
Net cash generated from
investing activities (42) (30) (69)
---------------------------- ---------------------------- ---------------------------- ----------------------------
FINANCING ACTIVITIES
Purchase of own shares - (416) (418)
Purchase of shares for
cancellation (5,620) (9,572) (14,851)
---------------------------- ---------------------------- ---------------------------- ----------------------------
Net cash used in financing
activities (5,620) (9,988) (15,269)
---------------------------- ---------------------------- ---------------------------- ----------------------------
DECREASE IN CASH AND CASH
EQUIVALENTS (1,478) (4,025) (7,015)
Cash and cash equivalents
at start of year 1,995 9,032 9,032
Effect of foreign exchange
rate changes - 32 (23)
---------------------------- ---------------------------- ---------------------------- ----------------------------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD 517 5,039 1,995
---------------------------- ---------------------------- ---------------------------- ----------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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