TIDMAVR
RNS Number : 4303R
Avarae Global Coins PLC
23 August 2010
News Release
23 August 2010
AVARAE GLOBAL COINS PLC
FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2010
Avarae Global Coins plc ("Avarae" or the "Company"), the UK's only publicly
traded specialist investment company dedicated to investing in rare and high
quality coins, is pleased to announce its final audited results for the year
ended 31 March 2010.
Highlights for the year:
· Sales of coins and coin collections in the year increased by 35% to
GBP1.22 million (2009: GBP0.91 million);
· Carrying value of portfolio of rare and high quality coins increased to
GBP10.34 million (2009: GBP9.64 million);
· Gross margins achieved during the year of almost 20% (2009: 17%);
· Profit on ordinary activities up 7 fold to GBP0.37 million (2009: GBP0.05
million);
· Earnings per share doubled to 0.35p (2009: 0.17p);
· NAV per share increased by more than 15% to 12.6p at the year end (2008:
10.9p); and
· Net cash of GBP0.82 million at year end (2009: GBP1.90 million).
Commenting on the results, Diane Clarke, Executive Director of Avarae, said:
"The Board considers that, in spite of the continued difficulties throughout the
wider financial market and the threat of a double dip recession, Avarae has
successfully demonstrated that it is a genuine alternative asset play in the
current financial environment, as evidenced by it reporting material increases
in profits and NAV for the year, together with some successful realisations of
its investment portfolio. The international nature of the coin market allows the
Company to continue to take advantage of rising prices across a number of
sectors and importantly take advantage of sectors which may be starting to show
some short term weakness. It appears that trends that surfaced last year have
continued, with the lower value and more common coins experiencing static or
even declines in value, whereas values for the rarest and highest quality coins,
the only type in which Avarae is interested, continue to rise, drawing strong
international interest, which has been helped by the relative weakness in the
pound against the US dollar and euro.
The Company has a strong balance sheet, including a coin portfolio with a
current carrying value, as reported on by industry experts, of more than GBP10.3
million. The Directors, therefore, remain cautiously optimistic about the
Company's future prospects."
The Company's audited report and accounts, together with the notice of the AGM,
have today been posted to shareholders. An electronic copy of the audited report
and accounts will also shortly be available on the Company's website:
www.avarae.com.
For further information on Avarae Global Coins plc, please contact:
+------------------------------------------------+----------------------+
| Diane Clarke/Matt Wood | +44 (0)16 2461 5614 |
+------------------------------------------------+----------------------+
| Avarae Global Coins plc | |
+------------------------------------------------+----------------------+
| | |
+------------------------------------------------+----------------------+
| Adrian Hadden/Stewart Wallace | +44 (0)20 7523 8350 |
+------------------------------------------------+----------------------+
| Collins Stewart Europe Limited | |
+------------------------------------------------+----------------------+
| | |
+------------------------------------------------+----------------------+
| Gordon Puckey/Karin Tyche | +44 (0)20 7947 2856 |
+------------------------------------------------+----------------------+
| Phoenix Financial PR | |
+------------------------------------------------+----------------------+
AVARAE GLOBAL COINS plc
Audited results FOR THE YEAR ENDED 31 March 2010
Directors' Report
Introduction
We are pleased to present the final audited results for Avarae Global Coins plc
("Avarae" or "the Company") for the year ended 31 March 2010 to our
shareholders. The following report show the financial position of the Company
for the year ended 31 March 2010, together with some additional unaudited
information since the year end. During the year under review, the Company
continued to add to its portfolio of rare and high quality coins.
Avarae provides access for institutions and individuals wanting to diversify
their investment portfolios away from the traditional asset classes such as
equities, property and bonds without the need to be an expert in the
coin-collecting sector. The Board's strategy, as set out in its AIM admission
document, is to invest actively in the rare and highest quality segment of the
coin-collecting sector in various countries around the world. The investing
policy of the Company is set out in more detail below.
Investing Policy
The Company's investment policy is to invest in rare, high quality antique coins
and coin collections from across the world. We are currently building up an
impressive portfolio of extremely high quality, rare coins which we intend to
hold both for the long-term (i.e. 3 to 5 years), in order to achieve long-term
capital growth for our shareholders, and also the short-term, in order to take
advantage of short-term trading opportunities, as the market for rare coins
continues to grow. The value of each investment is expected to range from a few
hundred pounds up to GBP750,000. The most expensive coin acquired by Avarae to
date is the Edward III Double Florin which was acquired for GBP0.4 million in
2006.
The Board's decision on whether to acquire or dispose of an investment is made
on the recommendation of its industry expert independent Advisory Panel
("Panel") that assesses and approves all coin trading related activities. The
Panel members are Sir John Wheeler and David Pinckney. Neither member has any
connection to Avarae or any of its numismatic advisers except as a member of the
Panel. The Board is independent of the Panel, the Company's numismatic advisers
and the Company's substantial Shareholders.
The Company's objective is to achieve long term capital growth through the
appreciation in the value of the coins acquired. Compound annual returns
potentially achievable over the medium to long term for the highest quality and
rarest coins are expected to be around 10 per cent., in line with historical
averages. As at the date of this report, and since its formation in 2006, the
Company has no borrowings and has no present intention of securing any
borrowings.
The coin-dealing sector
The market for trading coins is international in nature and significant in size.
For a number of years now, there has been an increasing interest in the coin
sector and its prominence as an alternative investment class is illustrated by
continued increases in activity around the world, where record prices have been
paid for certain rare pieces. The number of interested parties in coins and coin
collections appears to be continuing to grow, with auction houses reporting
significant growth in the numbers of interested bidders compared to the
corresponding auctions in previous years.
The coin market has proved to be extremely resilient over the last 12-18 months
in spite of the backdrop of tough global economic conditions. Important coin
collections have frequently come up for sale worldwide (including in the world's
largest market, the US) with auction houses achieving record prices,
particularly for the highest quality, rare pieces.
Rare English, Islamic, US and Eastern European coins remain the strong sectors
within the industry although record prices continue to be paid for rare high
quality pieces from all over the world. Recent examples of the strong interest
in the rare coin market include the highest price ever paid for a coin in June
2010, where a 1794 Silver Dollar sold for $7.85 million. As a result, the world
record prices for US and non-US coins have been broken within the last two years
(a Russian Elizabeth 20 Roubles of 1755 sold for GBP1.82 million in November
2008, a world record for a non-US coin), which demonstrates the increasing
interest of coins as an investment asset class.
Demand for English coins continues to increase, which is encouraging given the
Company's relatively large exposure to the highest quality English coins.
Avarae's investments
In the year to 31 March 2010, the Company acquired GBP1.1 million worth of coins
(2009: GBP2.39 million), taking the value of the coin portfolio as at 31 March
2010 to GBP10.34 million (2009: GBP9.64 million). In line with its investment
strategy, the Company has focused on the purchase of extremely high quality
English coins, but also this year we have focussed on increasing the Company's
exposure to Ancient coins (Greek and Roman) and also mainland European coins.
2009/10 was a strong year for Islamic coins and the Company was able to realise
some significant sales at strong margins for certain of its ever impressive
Islamic collection. As in previous years, we have concentrated on building up
collections of particular sectors of rare coins that our Advisory Panel believes
will be of significant value in the years to come. Furthermore, a focus was
also made on picking up extremely rare coins, where there are only a few
examples known to exist worldwide. Examples of rare coins acquired during the
year and since the year end include:
· Edward The Black Prince, Hardi D'Or: Struck in Bordeaux, it was the final
gold coin of the Black Prince issued from 1368. Anglo-Gallic coins were issued
from 1340, the time that Edward III assumed the title of "King of England and
France";
· Licinius II, Gold Aureus, mint of Nicomedia, A.D. 321-2: rare;
· Scotland, William II, Darien Company, Pistole 1701: extremely rare gold coin
issued following by an Act of Scottish Parliament and the formation of the
Darien Company which traded overseas, principally with Africa;
· England, Edward VIII Matt finish Pattern Florin 1937: mint state and thought
to be unique, as other florins are in proof sets with a bright finish.
Avarae's current intention is to hold the vast majority of its current portfolio
for the foreseeable future and only make disposals of coins or collections when
the Board believes it to be in the best interests of the Company and its
shareholders.
Financial Results
Revenue from the sale of coins or coin collections for the year ended 31 March
2010 increased by more than one third on the previous year to GBP1.22 million
(2009: GBP0.91 million). The Company achieved a higher average gross return
(before year-end revaluation) than last year of almost 20 per cent. (2009: 17
per cent.). As in prior years, some of the coins sold were examples of
duplicates within the portfolio arising from recently acquired collections. This
year, the Company also took advantage of opportunistic sales from its investment
portfolio, particularly of Middle Eastern coins. Importantly, the year ended 31
March 2010 was the first year that the value of coin realisations from the
Company's investment holdings exceeded sales of duplicate coins sold on an
opportunistic basis. In each case, the Company made double digit gross returns
demonstrating its ability to generate sizeable returns on its investment
portfolio.
As at 31 March 2010, in line with the strategy outlined in our AIM admission
document and in previous reports, the Company instructed industry experts to
undertake a detailed revaluation of its coin portfolio. As has been documented,
there are numerous examples of rare, high quality coins and collections being
sold which historically have resulted in an approximate 10 per cent. annual
compound return on average and therefore the Directors believed that an annual
revaluation of the coin portfolio is a necessity.
The Directors again took an extremely prudent approach to the revaluation
exercise instructing experts in the various sectors in which the Company held
coins. These experts considered the open market resale value of only those coins
that had been held within the portfolio for more than 12 months, i.e. only those
coins acquired and held by Avarae on or before 31 March 2009 and excluding those
purchased during the financial year under review.
The result of the extensive revaluation exercise, carried out on items as
described in the accounting policies, was that the overall carrying value of the
portfolio as at 31 March 2010 has increased by GBP0.61 million (2009: increase
of GBP0.30 million). The Directors consider this uplift in value to be
particularly conservative and would expect coins from the portfolio to achieve
appreciably higher returns if sold at auction, as has been proved by the sales
and gross sales margins achieved to date. The effect of the 31 March 2010
revaluation exercise is that, as at 31 March 2010, the Company's coin portfolio
comprised of coins purchased at cost for an aggregate GBP9.06 million (2009:
GBP8.96 million) and a revaluation amount of GBP1.28 million (net of VAT payable
on sale) (2009: GBP0.68 million).
The effect of the revaluation, together with the profits from the coin sales,
resulted in the Company achieving an increase in gross profit of almost 50 per
cent. to GBP0.81 million for the year ended 31 March 2010 (2009: GBP0.43
million). Administrative expenses during the year were up marginally on the
previous year at GBP0.44 million (2009: GBP0.38 million), however the increase
was almost entirely due to the costs associated with the Company's purchases of
its own shares for cancellation carried out during the year. Administrative
costs still represent less than 4 per cent. of the Company's net assets (2009:
3.2 per cent.). Interest receivable of GBP0.01 million was, as expected,
materially lower than last year (2009: GBP0.14 million) and is directly
attributable to the lower levels of cash balances held during the year and the
lower levels of interest rates available for our cash deposits. Net profit for
the year doubled to GBP0.38 million (2009: GBP0.19 million).
The Company ended the year with approximately GBP0.82 million of net cash, down
from GBP1.9 million at the end of March 2009. The Company's cash is prudently
managed across a spread of accounts, thereby reducing the risks of the
creditworthiness of any one financial institution. During the year, investments
of GBP1.1 million (2009: GBP2.3 million) were made in coins and coin
collections. As at the year end, the Company had net assets of GBP11.1 million
(2009: GBP12.0 million) and no borrowings. Net asset value per share ("NAV") as
at 31 March 2010 increased by more than 15 per cent. to 12.6 pence (2009: 10.9
pence).
Purchases of own shares for cancellation
On 9 March 2010, the Company announced that the two share buybacks announced in
August 2008 and April 2009 (the "Buybacks"), whose completion had been delayed
for certain legal reasons, were completed. Accordingly, the 22.0 million
ordinary shares ("Buyback Shares") in the Company that were the subject of the
Buybacks were cancelled in early March 2010 and removed from the Company's
register of members ("Capital Reduction"). As previously reported, the dual
effect of the Capital Reduction during the year under review was to reduce the
Company's issued ordinary share capital to 88,133,334 Ordinary Shares and remove
GBP1.24 million of other debtors from the Company's balance sheet, being the
aggregate share repurchase consideration paid by the Company.
Change of Director
Neil Orders and Brian Hatton, both executive directors of the Company resigned
from the Board on 30 June 2009 and 29 September 2009, respectively, to pursue
other interests. We are grateful to them for their contributions to the Company.
As previously announced, Neil and Brian were replaced by Tanya O'Carroll and
Diane Clarke on 14 July 2009 and 23 October 2009, respectively. Tanya and Diane
are both experienced company directors currently working for Hillberry Trust
Company Limited, Avarae's administrator in the Isle of Man. We look forward to
gaining from their continuing input over the coming months.
Annual General Meeting
The Company's audited report and accounts for the year ended 31 March 2010
("2010 Report") together with the notice ("Notice") of annual general meeting
("AGM") to be held at 12:00 noon on 17 September 2010 at the Company's
registered office and the form of proxy ("Proxy") for use thereon have today
been sent to shareholders. Copies of the Report, Notice and Proxy for use at the
AGM are available at the Company's registered office and on the Company's
website www.avarae.com.
Outlook
The Directors consider that, in spite of the continued difficulties throughout
the wider financial market and the threat of a double dip recession, Avarae has
successfully demonstrated that it is a genuine alternative asset play in the
current financial environment, as evidenced by it reporting material increases
in profits and NAV for the year, together with some successful realisations of
its investment portfolio. The international nature of the coin market allows the
Company to continue to take advantage of rising prices across a number of
sectors and importantly take advantage of sectors which may be starting to show
some short term weakness. It appears that trends that surfaced last year have
continued, with the lower value and more common coins experiencing static or
even declines in value, whereas values for the rarest and highest quality coins,
the only type in which Avarae is interested, continue to rise, drawing strong
international interest, which has been helped by the relative weakness in the
pound against the US dollar and euro.
Since the year end, the Company has acquired coins for a value of approximately
GBP0.2 million and has made disposals for a total of almost GBP0.3 million. The
Company has a strong balance sheet, including a coin portfolio with a current
carrying value, as reported on by industry experts, of more than GBP10.3
million. The Directors, therefore, remain cautiously optimistic about the
Company's future prospects.
APPROVED BY THE BOARD OF DIRECTORS
20 August 2010
RESULTS FOR THE YEAR ENDED 31 MARCH 2010
Profit and Loss Account
+------------------------------+------+------------------------+-----------+
| | | | |
+------------------------------+------+------------------------+-----------+
| | | Year | Year |
| | | ended | ended |
+------------------------------+------+------------------------+-----------+
| | | 31-Mar-10 | 31-Mar-09 |
| | | | |
+------------------------------+------+------------------------+-----------+
| |Note | GBP'000 | GBP'000 |
+------------------------------+------+------------------------+-----------+
| Revenue | | | |
+------------------------------+------+------------------------+-----------+
| Sales | 1 | 1,224 | 906 |
+------------------------------+------+------------------------+-----------+
| Cost of Sales | | (1,021) | (775) |
| | | | |
+------------------------------+------+------------------------+-----------+
| Coin revaluation | 6 | 607 | 300 |
+------------------------------+------+------------------------+-----------+
| | | ---- | ---- |
+------------------------------+------+------------------------+-----------+
| Gross profit | | 810 | 431 |
+------------------------------+------+------------------------+-----------+
| | | ---- | ---- |
+------------------------------+------+------------------------+-----------+
| Administrative expenses | | (441) | (381) |
+------------------------------+------+------------------------+-----------+
| | | ---- | ---- |
+------------------------------+------+------------------------+-----------+
| Profit on ordinary | | 369 | 50 |
| activities before: | | | |
+------------------------------+------+------------------------+-----------+
| Finance income | 3 | 11 | 140 |
+------------------------------+------+------------------------+-----------+
| Finance expenses | 3 | - | - |
+------------------------------+------+------------------------+-----------+
| | | ---- | ---- |
+------------------------------+------+------------------------+-----------+
| Profit on ordinary | | 380 | 190 |
| activities before tax | | | |
+------------------------------+------+------------------------+-----------+
| Tax on profit on ordinary | 4 | - | - |
| activities | | | |
+------------------------------+------+------------------------+-----------+
| | | ---- | ---- |
+------------------------------+------+------------------------+-----------+
| Profit on ordinary | | 380 | 190 |
| activities after taxation | | | |
+------------------------------+------+------------------------+-----------+
| | | ---- | ---- |
+------------------------------+------+------------------------+-----------+
| Earnings per share (basic | 5 | 0.35p | 0.17p |
| and diluted) | | | |
+------------------------------+------+------------------------+-----------+
There were no recognised gains or losses other than the profit for the year.
Balance sheet
+------------------------+------+-----------------------+------------+
| | | As at | As at |
+------------------------+------+-----------------------+------------+
| | | 31-Mar-10 | 31-Mar-09 |
+------------------------+------+-----------------------+------------+
| | Note | GBP'000 | GBP'000 |
+------------------------+------+-----------------------+------------+
| Assets | | | |
+------------------------+------+-----------------------+------------+
| Current Assets | | | |
+------------------------+------+-----------------------+------------+
| Coin inventory | 6 | 10,340 | 9,638 |
| | | | |
+------------------------+------+-----------------------+------------+
| Trade and other | 7 | 20 | 543 |
| receivables | | | |
+------------------------+------+-----------------------+------------+
| Cash at bank | | 822 | 1,898 |
+------------------------+------+-----------------------+------------+
| | | ---- | ---- |
+------------------------+------+-----------------------+------------+
| Total assets | | 11,182 | 12,079 |
| | | | |
+------------------------+------+-----------------------+------------+
| | | ---- | ---- |
+------------------------+------+-----------------------+------------+
| | | | |
+------------------------+------+-----------------------+------------+
| Liabilities and equity | | | |
+------------------------+------+-----------------------+------------+
| Creditors: amounts | 8 | 78 | 113 |
| falling due within one | | | |
| year | | | |
+------------------------+------+-----------------------+------------+
| | | ---- | ---- |
+------------------------+------+-----------------------+------------+
| Total Liabilities | | 78 | 113 |
+------------------------+------+-----------------------+------------+
| | | ---- | ---- |
+------------------------+------+-----------------------+------------+
| Equity | | | |
+------------------------+------+-----------------------+------------+
| Called up equity share | 10 | 881 | 1,101 |
| capital | | | |
+------------------------+------+-----------------------+------------+
| Share premium | | 9,438 | 10,460 |
+------------------------+------+-----------------------+------------+
| Profit and loss | | 785 | 405 |
| account | | | |
+------------------------+------+-----------------------+------------+
| | | ---- | ---- |
+------------------------+------+-----------------------+------------+
| Total Equity | | 11,104 | 11,966 |
| Shareholders' Funds | | | |
+------------------------+------+-----------------------+------------+
| | | ---- | ---- |
+------------------------+------+-----------------------+------------+
| Total Liabilities and | | 11,182 | 12,079 |
| equity | | | |
+------------------------+------+-----------------------+------------+
| | | ---- | ---- |
+------------------------+------+-----------------------+------------+
Cash Flow Statement
+----------------------------+------+-----------------+----+-----------+
| |Note | Year | | Year |
| | | ended | | ended |
+----------------------------+------+-----------------+----+-----------+
| | | 31-Mar-10 | | 31-Mar-09 |
+----------------------------+------+-----------------+----+-----------+
| | | GBP'000 | | GBP'000 |
+----------------------------+------+-----------------+----+-----------+
| | | | | |
+----------------------------+------+-----------------+----+-----------+
| Cash flows from operating | | | | |
| activities: | | | | |
+----------------------------+------+-----------------+----+-----------+
| Profit on ordinary | | 369 | | 50 |
| activities for the year | | | | |
+----------------------------+------+-----------------+----+-----------+
| | | | | |
+----------------------------+------+-----------------+----+-----------+
| Adjustments for: | | | | |
+----------------------------+------+-----------------+----+-----------+
| (Decrease) in payables | | (35) | | (130) |
+----------------------------+------+-----------------+----+-----------+
| Decrease/(Increase) in | | 523 | | (469) |
| receivables | | | | |
+----------------------------+------+-----------------+----+-----------+
| (Increase) in inventory | | (702) | | (1,914) |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
| Net cash flow from | | 155 | | (2,463) |
| operations | | | | |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
| Interest received | | 11 | | 140 |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
| Net cash from investing | | 11 | | 140 |
| activities | | | | |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
| Purchase of own shares for | | (1,242) | | - |
| cancellation | | | | |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
| Net cash from financing | | (1,242) | | - |
| activities | | | | |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
| Net decrease in cash and | | (1,076) | | (2,323) |
| cash equivalents | | | | |
+----------------------------+------+-----------------+----+-----------+
| | | 1,898 | | 4,221 |
| Opening cash position | 11 | | | |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
| Cash and cash equivalents | 11 | 822 | | 1,898 |
| at 31 March | | | | |
+----------------------------+------+-----------------+----+-----------+
| | | ---- | | ---- |
+----------------------------+------+-----------------+----+-----------+
Statement of changes in equity
+-------------------------+---------+---------+----------+---------+
| Company | Share | Share | Retained | Total |
| | capital | premium | earnings | |
+-------------------------+---------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+---------+---------+----------+---------+
| | | | | |
+-------------------------+---------+---------+----------+---------+
| | | | | |
+-------------------------+---------+---------+----------+---------+
| At 31 March 2008 | 1,101 | 10,460 | 215 | 11,776 |
+-------------------------+---------+---------+----------+---------+
| | | | | |
+-------------------------+---------+---------+----------+---------+
| Profit for the year | - | - | 190 | 190 |
+-------------------------+---------+---------+----------+---------+
| | --- | --- | --- | --- |
+-------------------------+---------+---------+----------+---------+
| At 31 March 2009 | 1,101 | 10,460 | 405 | 11,966 |
+-------------------------+---------+---------+----------+---------+
| | | | | |
+-------------------------+---------+---------+----------+---------+
| Share capital reduction | (220) | (1,022) | - | (1,242) |
+-------------------------+---------+---------+----------+---------+
| Profit for year | - | - | 380 | 380 |
+-------------------------+---------+---------+----------+---------+
| | --- | --- | --- | --- |
+-------------------------+---------+---------+----------+---------+
| At 31 March 2010 | 881 | 9438 | 785 | 11,104 |
| | | | | |
+-------------------------+---------+---------+----------+---------+
| | --- | --- | --- | --- |
+-------------------------+---------+---------+----------+---------+
Notes to the financial statements:
(1) Accounting policies
Basis of accounting
The financial statements have been prepared under the historical cost convention
and in accordance with International Financial Reporting Standards (IFRS). This
is the third year that the Company has prepared its financial statements in
accordance with IFRSs, having previously prepared its financial statements in
accordance with previous accounting standards. The functional currency is
GBP-Sterling. The following relevant standards have been applied:
IFRS 1 - First time adoption of International Financial Reporting Standards
IFRS 7 - Financial Instruments - Disclosures
IFRS 8 - Operating Segments
IAS 1 - Presentation of Financial Statements
IAS 2 - Inventories
IAS 7 - Cash Flow Statements
IAS 8 - Accounting Policies, Changes in Accounting Estimates, Errors
IAS 10 - Events after Balance Sheet Date
IAS 12 - Income Taxes
IAS 14 - Segment Reporting
IAS 18 - Revenue
IAS 21 - The Effects of Changes in Foreign Exchange Rates
IAS 24 - Related Party Disclosures
IAS 32 - Financial Instruments - Presentation
IAS 33 - Earnings per share
IAS 39 - Financial Instruments - Recognition and Measurement
New standards, amendments to published standards and interpretations to existing
standards effective for the year ended 31 March 2010
Certain new standards, amendments and interpretations to existing standards have
been published that are mandatory for later accounting periods and which have
not been adopted early. No interpretations were relevant to the Company The
relevant standards are:
International Accounting Standards ("IAS"/"IFRS")
Effective date
IAS 39Financial Instruments: Recognition and Measurement (revised)
1 July 2009
Revenue recognition
The Company's sales consist of sales of coins or collections of coins and
accounted for on an accruals basis
(2) Segmental information
The Company has one class of business, that of the sale of antiquarian and
collectable coins. All sales have been through dealers based in the single
geographic segment of the United Kingdom. Accordingly no further segmental
information is presented.
(3) Finance revenue
The finance revenue consists of bank deposit interest received. There were no
finance costs in the year.
(4) Taxation
The Company is resident for tax purposes in the Isle of Man.
The Company is chargeable to Isle of Man corporate income tax at the standard
rate of 0%, which took effect from 6 April 2006.
+----------------------+---------+-----------------+------------+
| | | Year ended | Year ended |
+----------------------+---------+-----------------+------------+
| | | 31-Mar-10 | 31-Mar-09 |
+----------------------+---------+-----------------+------------+
| | | GBP'000 | GBP'000 |
+----------------------+---------+-----------------+------------+
| Profit before tax | | 380 | 190 |
+----------------------+---------+-----------------+------------+
| | | ---- | ---- |
+----------------------+---------+-----------------+------------+
| Isle of Man tax at | | - | - |
| 0% | | | |
+----------------------+---------+-----------------+------------+
| | | ---- | ---- |
+----------------------+---------+-----------------+------------+
| Tax expense for the | | Nil | nil |
| year | | | |
+----------------------+---------+-----------------+------------+
| | | ---- | ---- |
+----------------------+---------+-----------------+------------+
(5) Earnings per share
The earnings per share (basic and diluted) for the year ended 31 March 2010 was
0.35p (2008: 0.17p). The calculation of earnings per share is based on the
profit of GBP380,000 (2009: profit GBP190,000) for the year and the weighted
average number of shares in issue being 108,459,361 (2009: 110,133,334).
(6) Coin inventory
At the year end, only those coins that had been acquired by the Company before
31 March 2009, were revalued by industry experts to their expected current
market value less the VAT payable on sale. Inventory purchased during the year
ended 31 March 2010 has been carried at cost. This is considered by the
directors to give a fair value for the inventory. Inventory of GBP10,340,000
(2009: GBP9,638,000) is carried as 'Inventory carried at fair value less costs
to sell'. The purchase cost of inventory held at 31 March 2010 was GBP9,058,000
(2009: GBP8,964,000)
(7) Trade and other receivables
+-----------------------------+--+-----------------------+------------+
| | | As at | As at |
+-----------------------------+--+-----------------------+------------+
| | | 31-Mar-10 | 31-Mar-09 |
+-----------------------------+--+-----------------------+------------+
| | | GBP'000 | GBP'000 |
+-----------------------------+--+-----------------------+------------+
| Trade debtors | | - | 31 |
+-----------------------------+--+-----------------------+------------+
| Prepaid expenses | | 20 | 22 |
+-----------------------------+--+-----------------------+------------+
| Other debtors | | - | 490 |
+-----------------------------+--+-----------------------+------------+
| | | ---- | ---- |
+-----------------------------+--+-----------------------+------------+
| Total | | 20 | 543 |
+-----------------------------+--+-----------------------+------------+
| | | ---- | ---- |
+-----------------------------+--+-----------------------+------------+
As at 31 March 2009, other debtors of GBP0.49 million represented the amount due
from the shareholder that agreed to sell 7.0 million Ordinary Shares to the
Company for cancellation, as announced by the Company in August 2008. These 7.0
million Ordinary Shares were cancelled from the Company's share register in
March 2010 in consideration for reducing debtors by GBP0.49 million. For further
information see note 10 to these results.
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
(8) Payables
+----------------+--------------+------------------+------------+
| | | As at | As at |
+----------------+--------------+------------------+------------+
| | | 31-Mar-10 | 31-Mar-09 |
+----------------+--------------+------------------+------------+
| | | GBP'000 | GBP'000 |
+----------------+--------------+------------------+------------+
| Trade | | - | 40 |
| creditors | | | |
+----------------+--------------+------------------+------------+
| Accrued | | 61 | 73 |
| expenses | | | |
+----------------+--------------+------------------+------------+
| Other | | 17 | - |
| creditors | | | |
+----------------+--------------+------------------+------------+
| | | ---- | ---- |
+----------------+--------------+------------------+------------+
| | | 78 | 113 |
+----------------+--------------+------------------+------------+
| | | ---- | ---- |
+----------------+--------------+------------------+------------+
All creditors are due within one year.
(9) Financial instruments and risk
An explanation of the Company's financial instrument risk management objectives,
policies and strategies are set out below.
Interest rate risk
The company's exposure to interest rate risk is limited to its interest income
on bank balances in the company's functional currency of sterling. Non-current
account balances receive interest at floating rates. No sensitivity analysis
has been prepared as required by 'IFRS 7 Financial Instruments: Disclosures' as
the directors consider the results of any such analysis to be insignificant.
Liquidity risk
Liquidity risk is the risk that the company will not be able to meet its
financial obligations as they fall due. The Company's approach to managing
liquidity is to try to ensure, as far as possible, that it will always maintain
sufficient cash to meet the next three years operating costs.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or
counterparty fails to meet its contractual obligations and is primarily
attributable to its trade receivables.
The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk at the reporting date was:
+-----------------------+-----------------+------------------+
| | Carrying amount | Carrying amount |
| | 2010 | 2009 |
+-----------------------+-----------------+------------------+
| | GBP'000 | GBP'000 |
+-----------------------+-----------------+------------------+
| | | |
+-----------------------+-----------------+------------------+
| Trade and other | 20 | 543 |
| receivables | | |
+-----------------------+-----------------+------------------+
| | -- | -- |
+-----------------------+-----------------+------------------+
| Cash at bank | 822 | 1,898 |
+-----------------------+-----------------+------------------+
| | -- | -- |
+-----------------------+-----------------+------------------+
The credit risk on liquid funds is limited because the counterparties are banks
with high credit ratings assigned by international credit rating agencies.
(10) Share capital and premium
+------------------------------------------+-----------+-----------+
| | As at | As at |
+------------------------------------------+-----------+-----------+
| | 31-Mar-10 | 31-Mar-09 |
+------------------------------------------+-----------+-----------+
| | GBP'000 | GBP'000 |
+------------------------------------------+-----------+-----------+
| Authorised | | |
+------------------------------------------+-----------+-----------+
| Ordinary shares of GBP0.01 each | 2,000 | 2,000 |
+------------------------------------------+-----------+-----------+
| | ---- | ---- |
+------------------------------------------+-----------+-----------+
| Allotted, called up and fully paid | | |
+------------------------------------------+-----------+-----------+
| 88,133,334 ordinary shares of GBP0.01 | 881 | 1,101 |
| each (2008: 110,133,334) | | |
+------------------------------------------+-----------+-----------+
| | ---- | ---- |
+------------------------------------------+-----------+-----------+
On 9 March 2010, the Company announced that it had cancelled the, in aggregate,
22,000,000 Ordinary Shares the subjects of the two share buybacks previously
announced in August 2008 and April 2009 for a total consideration of GBP1.24
million, plus expenses.
(11) Cash and cash equivalents
+------------------------------------------------------------+
| Cash and cash equivalents included in the statement of |
| cash flows comprise the following amounts in the statement |
| of financial position: |
+------------------------------------------------------------+
+------------------------------------------+-------------+-----------+
| | As at | As at |
+------------------------------------------+-------------+-----------+
| | 31-Mar-10 | 31-Mar-09 |
+------------------------------------------+-------------+-----------+
| | GBP'000 | GBP'000 |
+------------------------------------------+-------------+-----------+
| | | |
+------------------------------------------+-------------+-----------+
| Cash on hand and balances with banks | 822 | 1,898 |
+------------------------------------------+-------------+-----------+
| Short-term investments | - | - |
+------------------------------------------+-------------+-----------+
| | ---- | ---- |
+------------------------------------------+-------------+-----------+
| Cash and cash equivalents as previously | 822 | 1,898 |
| reported | | |
+------------------------------------------+-------------+-----------+
| Effect of exchange rate changes | - | - |
+------------------------------------------+-------------+-----------+
| | ---- | ---- |
+------------------------------------------+-------------+-----------+
| Cash and cash equivalents as restated | 822 | 1,898 |
+------------------------------------------+-------------+-----------+
| | ---- | ---- |
+------------------------------------------+-------------+-----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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