ECOVISTA PLC

 

("Ecovista" or "the company")

 

Audited Annual Results for the year ended 31 August 2018

 

Chairman's statement

I am pleased to present to you my first chairman's statement since my appointment for the year ended 31 August 2018.  

Overview

The financial statements for the year to 31 August 2018 showed a loss of £96,379 comparable to the loss for the year ended 31 August 2017 of £887,306.

The group's properties were valued at year end. This resulted in a revaluation of £142,075 to the properties.

Since the end of the financial period, we have seen the development of 100 Rye Street completed and it will go onto the market next month with an asking price of £1,750,000. We have successfully gained planning for 9 houses on our option site at Start Hill. 

During the year the company raised £299,950 in new equity, and £550,000 in convertible loan notes showing the strong commitment from new investors. This has strengthened our financial position, aided the completion of the property investments we targeted for this year and has helped increase the net asset value (NAV) of the group from £1,182,982 to £1,390,973 for the period to 31 August 2018.

The board remains committed to continue to keep a tight rein on costs and low levels of leveraging.

Current operations

100 Rye Street Ltd

The new 4,380sq ft. house that has been built is close to being completed and is intended to be marketed at £1,750,000.

Start Hill Limited

Start Hill Limited owns a four-bedroom house called Marstons on 0.3 of a hectare of land and is currently rented out on an Assured Shorthold Tenancy.

Willside Limited

Willside Limited has an option to purchase a four-bedroom house, next to Marstons, within a slightly bigger plot of 0.43 hectares. The group has gained planning permission to demolish the house and build nine houses on the plot.

Cignella S.r.l.

The Cignella Estate (Cignella -- http://www.cignella.com/en/) is a resort in southern Tuscany approximately 35 minutes south of Siena. The resort comprises 18 houses and apartments, of which 13 are currently let via web based and local holiday companies to tourists mostly from the UK and Germany.  The remaining 5 properties are townhouses which are yet to be completed. 

At present Ecovista owns 13% of the shares in Cignella S.r.l and has an option to buy the balance of the equity for EUR4m. Although at current valuations this option is unlikely to be exercised.

 

Prior Year Adjustment

A prior year adjustment has been made within the financial statements.  In previous years, the properties held were accounted for as Investment Property. However, as the intended use of these properties is for subsequent resale following development, it is not considered that they meet the definition of investment properties per UK GAAP and they have been reclassified to Property, Plant and Equipment. The prior year figures have been adjusted and reclassified accordingly. Details on this can be found in note 11.

Going Concern

The auditors have included a material uncertainty in relation to going concern within their audit report.

The Group's current liabilities exceeded its current assets by £279,871 as at the year end. This position has arisen as a result of short term funding secured against one of the Group's property assets. This short-term loan has subsequently been settled and the Group has entered into another short term loan arrangement.

 

This financing arrangement causes a reportable deficit in the accounts of the company. However the company has a continued expectation for any facilities to be renewed and anticipates in the future to release funds by the sale of the properties within its Fixed Assets.

 

With a debt to equity ratio of only 30% the Directors consider there to be sufficient borrowing power, if required, for the Group and subsidiary companies to continue as a going concern although there can be no absolute guarantee to this effect.

 

Outlook

The group has continuous opportunities available to it and is currently looking at a number of potential development sites in and around the London, Essex and Hertfordshire area.

The Directors believe that there is sustainable growth in selective property transactions in these areas.

The company intends to launch a EUR10,000,000 Eurobond listed on the GEM exchange in Dublin in the coming months in order to continue to fund further acquisitions in its target market and explore further opportunities in the UK property market.

The Board continues to view the year ahead with confidence.

 

D Barnett

Chairman

15 February 2019

 

Consolidated Income Statement

For the year ended 31 August 2018

 

		Year to	Year to
		31 August 2018	31 August 2017 (Restated)
Continuing operations	Notes	£	£
Turnover	5	17,400	-
Cost of sales		-	-
Gross profit		17,400	-
Loss on disposal of subsidiary		-	(169,941)
Impairment of Investments	14	-	(480,055)
Administrative expenses		(190,614)	(219,356)
Operating loss	6	(173,214)	(869,352)
Financial expense		(65,240)	(17,954)
Loss before tax		(238,454)	(887,306)
Taxation	9	-	-
Loss for the year from continuing operations		(238,454)	(887,306)
Loss for the financial year attributable to:
Non-controlling interest		(7,544)	-
Equity shareholders of the company		(230,910)	(887,306)
		(238,454)	(887,306)
Other Comprehensive Income:
Revaluation of property	12	142,075	-
Total Comprehensive Loss for the Year		(96,379)	(887,306)
Loss/ total comprehensive income for the financial year attributable to:
Non-controlling interest		(7,544)	-
Equity shareholders of the company		(88,835)	(887,306)
		(96,379)	(887,306)
Earnings per share attributable to owners of the parent company
Basic earnings per share (pence)	11	(0.005)	(0.024)

 

Statements of Financial Position

As At 31 August 2018

 

		Group			Company
		2018	2017 (Restated)		2018	2017 (Restated)
	Notes	£	£		£	£
Fixed assets
Property, plant and equipment	12	2,107,090	1,347,090		-	-
Investment in subsidiaries	13	-	-		281	181
Investments	14	508,616	270,739		508,616	270,739
		2,615,706	1,617,829		508,897	270,920
Current assets
Debtors	15	9,623	75,092		1,816,142	1,482,086
Cash at bank and in hand		75,637	124,310		63,364	113,644
		85,260	199,402		1,879,506	1,595,730
Creditors: amounts falling due within one year	16	(365,131)	(80,071)		(49,307)	(52,299)
Net current (liabilities) / assets		(279,871)	119,331		1,830,199	1,543,431
Total assets less current liabilities		2,335,835	1,737,160		2,339,096	1,814,351
Creditors: amounts falling due after more than one year	17	(944,862)	(554,178)		(944,862)	(554,178)
Net assets		1,390,973	1,182,982		1,394,235	1,260,173
Capital and reserves
Called up share capital	19	181,760	173,190		181,760	173,190
Share premium account	20	2,918,687	2,683,045		2,918,687	2,683,045
Revaluation reserve	20	142,075	-		-	-
Equity reserve	20	74,710	14,552		74,710	14,552
Profit and loss account		(1,918,715)	(1,687,805)		(1,780,922)	(1,610,614)
Equity attributed to Parent		1,398,517	1,182,982		1,394,235	1,260,173
Non-controlling interest		(7,544)	-		-	-
Shareholders' Funds		1,390,973	1,182,982		1,394,235	1,260,173

The loss attributable to the parent company for the year was £170,308 (2017: £838,940)

The financial statements were approved by the board of directors on 12 February 2019 and signed on its behalf.

 

 

Consolidated statement of changes in equity

For the year ended 31 August 2018

 

	Share capital	Share premium	Revaluation Reserve	Equity reserve	Retained earnings	Total	Non- controlling interest	Total Equity
	£	£	£	£	£	£	£	£
1 September 2016	163,190	2,343,045	-	22,000	(800,499)	1,727,736	-	1,727,736
Loss for the year	-	-	-	-	(887,306)	(887,306)	-	(887,306)
Other Comprehensive Income	-	-	-	-	-	-	-	-
Total Comprehensive Income	-	-	-	-	(887,306)	(887,306)	-	(887,306)
Issue of share capital	10,000	340,000	-	-	-	350,000	-	350,000
Movement in convertible loan notes	-	-	-	(7,448)	-	(7,448)	-	(7,448)
Total transactions with owners recognised directly in equity	10,000	340,000	-	(7,448)	-	342,552	-	342,552
1 September 2017 - Restated	173,190	2,683,045	-	14,552	(1,687,805)	1,182,982	-	1,182,982
Loss for the year	-	-	-	-	(230,910)	(230,910)	(7,544)	(238,454)
Other Comprehensive Income	-	-	142,075	-	-	142,075	-	142,075
Total Comprehensive Income	-	-	142,075	-	(230,910)	(88,835)	(7,544)	(96,379)
Issue of share capital	8,570	235,642	-	-	-	244,212	-	244,212
Movement in convertible loan notes	-	-	-	60,158	-	60,158	-	60,158
Total transactions with owners recognised directly in equity	8,570	235,642	-	60,158	-	304,370	-	304,370
31 August 2018	181,760	2,918,687	142,075	74,710	(1,918,715)	1,398,517	(7,544)	1,390,973

 

Company statement of changes in equity

 

	Share capital	Share premium	Equity reserve	Retained earnings	Total
	£	£	£	£	£
1 September 2016	163,190	2,343,045	22,000	(771,674)	1,756,561
Loss for the year	-	-	-	(838,940)	(838,940)
Other comprehensive income	-	-	-	-	-
Total comprehensive income for the year	-	-	-	(838,940)	(838,940)
Issue of share capital	10,000	340,000	-	-	350,000
Movement in convertible loan notes	-	-	(7,448)	-	(7,448)
Total transactions with owners recognised directly in equity	10,000	340,000	(7,448)	-	342,552
1 September 2017	173,190	2,683,045	14,552	(1,610,614)	1,260,173
Loss for the year	-	-	-	(170,308)	(170,308)
Other comprehensive income	-	-	-	-	-
Total comprehensive income for the year	-	-	-	(170,308)	(170,308)
Issue of share capital	8,570	235,642	-	-	244,212
Movement in convertible loan notes	-	-	60,158	-	60,158
Total transactions with owners recognised directly in equity	8,570	235,642	60,158	-	304,370
31 August 2018	181,760	2,918,687	74,710	(1,780,922)	1,394,235

 

Group and company cash flow statement

For the year ended 31st August 2018

 

	Group			Company
	2018	2017		2018	2017
	£	£		£	£
Operating activities
Loss for the year	(238,454)	(887,306)		(170,308)	(838,940)
Loss on disposal of investment	-	169,941		-	169,941
Impairment of investment	-	482,208		-	482,208
Net finance cost	65,240	-		65,240	-
Other movements	(20)	(15,348)		(20)	(116,020)
(Increase) / decrease in debtors	65,469	(2,968)		(334,056)	-
(Decrease) / increase in creditors	292,604	(39,033)		(2,992)	512
Net cash used in operating activities	184,839	(292,506)		(442,136)	(302,299)
Investing activities
Addition to property	(617,925)	(682,090)		-	(682,090)
Proceeds from sale of subsidiaries	-	500,000		-	500,000
Acquisition of subsidiaries	(100)	(180)		(100)	(180)
Net cash used in investing activities	(618,025)	(182,270)		(100)	(182,270)
Financial activities
Net proceeds from issue of equity	244,212	350,000		244,212	350,000
Proceeds from loan notes issue	550,000	270,000		550,000	270,000
Loan paid	(100,000)	(52,736)		(100,000)	(52,736)
Loans issued	(309,699)	-		(302,256)	-
Net cash used in financing activities	384,513	567,264		391,956	567,264
Net (decrease) / increase in cash and cash equivalents	(48,673)	92,488		(50,280)	82,695
Cash and cash equivalents at the beginning of the period	124,310	31,822		113,644	30,949
Cash and cash equivalents at the end of the period	75,637	124,310		63,364	113,644

 

 

The directors of Ecovista Limited accept responsibility for this announcement.

For further information:

 

Louise Hartwidge

Millars 3

Southmill Road

Hertfordshire, CM23 3DH

United KingdomTel: +44 (0) 07702 576421

http://www.ecovistaplc.com/

 

 

CORPORATE ADVISER AND CONTACT DETAILS:

 

Alexander David Securities Limited

David Scott  - Corporate Finance

James Dewhurst - Corporate Broking

Telephone: +44 (0) 20 7448 9820

49 Queen Victoria Street EC4N 4SA

http://www.ad-securities.com