EcoVista PLC
Audited Annual Results for the year ended 31 August 2018
EcoVista PLC (EVTP) 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
Statements of Financial Position As At 31 August 2018
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
Company statement of changes in equity
Group and company cash flow statement For the year ended 31st August 2018
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 |
ISIN: | GB00B0W5NJ22 |
Category Code: | FR |
TIDM: | EVTP |
LEI Code: | 2138009TFBHJ8KVP2S10 |
Sequence No.: | 7505 |
EQS News ID: | 776325 |
End of Announcement | EQS News Service |