EcoVista PLC
EcoVista PLC: Audited Annual Results for the year ended 31 August 2017
EcoVista PLC (EVTP)
31 January 2018 GB00B0W5NJ22 Ecovista PLC (“Ecovista” or “the Company”)
Audited Annual Results for the year ended 31 August 2017
Ecovista Plc, are delighted to report its audited annual results for the twelve months ended 31 August 2017.
CHAIRMAN’S STATEMENT I am pleased to present to you my first chairman’s statement since the departure of our previous chairman Mr Luca Tenuta for the period 1st September 2016 to 31st August 2017. Since my appointment I have made a thorough examination of company’s investments. Overview The accounts for the period to 31 August 2017 showed a loss of £887,306, comparable to the loss for the 8 months ended 31 August 2016 of £216,537. During the financial period, we have had several regulatory issues caused by one of the nominees of a number of our shareholders. These issues were beyond our control but have now all been resolved. The consequence of this resulted in a higher level of running costs due to various legal fees the Company was having to pay to protect the Company’s position. The continued decline in the Italian property market saw the value of our holding in Cignella SRL be devalued by £482,208, this being 54% of the losses incurred. The current value of our holding in Cignella is £151,807. During the financial period under review the Company raised £350,000 in new equity, and £470,000 in convertible loan notes (of which I personally invested £270,000) showing the strong commitment from new investors. This has strengthened our balance sheet and helped the completion of the property investments we targeted for this period, increasing the NAV of the group from £1,727,736 to £1,182,982 for the period to 31 August 2017. The board remains committed to continue keeping a tight rein on costs and low levels of leveraging.
Current operations 100 Rye Street Ltd The new 4,380sq ft. house that is being built is progressing well and is currently at first floor level with an expected completion date of 1st May with an anticipated gross value in the region of £1,350,000. Start Hill Limited and Willside Limited Start Hill Limited owns a 4-bedroom house on 0.3 of a hectare which is currently rented out on an Assured Shorthold Tenancy. Willside Limited has an option to purchase on the next-door property, also a 4-bedroom house within a slightly bigger plot of 0.43 hectares. The group is looking to gain planning permission to demolish the two houses and build a significant number of two-bedroom apartments on the combined plot. A pre-application has been obtained and the company hopes to submit a full planning application in early March. Cignella S.r.l. The Cignella Estate (Cignella — http://www.cignella.com/en/) The resort is 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. Holiday sale continue to improve year on year. At present Ecovista owns 13% of the shares in Cignella SRL and has an option to buy the balance of the equity for EUR4m. Recent Sale Willow Cottages Ltd After the planning appeal was turned down for the car park next to Stansted Airport, the group decided to sell the company Willow Cottage Limited for £400,000 (£100,000 for the shares, £300,000 for the debt). Although this created a loss of £169,941 on the transaction. The Board believes that the funds can be better used to generate value for Shareholders. Outlook The Group has continuous deal flow and is currently looking at a number of potential development sites in and around the London, Essex and Hertfordshire area. The Directors believe 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.
Consolidated Income statementFor the year ended 31 August 2017
There are no items of other comprehensive income.
Consolidated Statement of financial positionat 31 August 2017
The financial statements were approved by the board of directors on 31 January 2017 and signed on its behalf.
L Stokely (Director) Company No. 05660908 (England and Wales)
Group statement of changes in equityFor the year ended 31 August 2017
1. Turnover
2. Operating lossOperating loss is stated after charging:
3. Taxation
The group has estimated excess management expenses of £908,534 (2016: £734,799) available for carry forward against future trading profits. Deferred tax assets arising from these losses at 20% of £887,306 (2016: £216,536) have not been provided in the accounts as recovery is not probable in the foreseeable future.
Earnings per share
4. Goodwill
Goodwill relates to the acquisition of Willow Cottages Limited.
5. Investment properties
During the period, Ecovista plc acquired 80% in Start Hill Limited.
6. Investments in subsidiaries
At 31 August 2017 the Company had interests in the following subsidiaries:
7. Investments
a) Loan issued is an interest free loan to Cignella Srl with an option to acquire all of Cignella’s share capital by 31 December 2019, the loan is repayable on 31 December 2019. The loan is carried at amortised cost:
b) Equity investments represent a 13% stake in Cignella Srl received as a partial loan repayment. The investments are unquoted and stated at cost less impairment.
8. Debtors
Loans issued represent loans to Cignella Wellness Limited; the loans are unsecured, interest free and repayable in December 2019.
9. Creditors: amounts falling due within one year
10. Share capital
On 01 August 2017, 571,428,571 new ordinary shares were subscribed for at £0.00035 and a further 428,571,428 new ordinary shares were subscribed for at £0.00035, both to fund future property acquisitions.
11. Transactions with related partiesThere were no related party transactions during the year apart from the directors‘ remuneration disclosed in note 2. 12. Ultimate Controlling PartyIn the opinion of the Directors there is no controlling party at the period end. 13. Post balance sheet eventsThere have been no material events after the reporting date. |
ISIN: | GB00B0W5NJ22 |
Category Code: | FR |
TIDM: | EVTP |
Sequence No.: | 5175 |
End of Announcement | EQS News Service |