TIDMORA
RNS Number : 7201C
ORA Capital Partners Ltd
04 May 2012
4 May 2012
ORA Capital Partners Limited
("ORA" or the "Company" or the "Group")
Results for the year ended 31 January 2012
ORA Capital Partners Limited (AIM: ORA), the Guernsey based
company involved in the growth and development of businesses,
announces its results for the year ended 31 January 2012.
Highlights:
-- Loss before tax from continuing operations of GBP22.1 million
(2011: profit GBP29.3 million)
-- Unrealised losses on revaluation of strategic portfolio
investments of GBP24.8 million (2011: profit GBP26.2 million)
-- Investment portfolio disposals realise cash proceeds of
GBP12.5 million (2011: GBP25.1 million)
-- Buy-back and cancellation of 12.9 million shares at a cost of
GBP14.9 million, representing an average buy-back price of 127.9p
per share
-- Net assets attributable to shareholders of GBP92.7 million
(178.1p per share) (2011: GBP130.0 million and 204.4p per share,
respectively)
-- Cash balances of GBP2.0 million (2011: GBP9.0 million),
GBP3.1m disposal proceeds cash in transit receivable and liquid
trading investments of GBP11.0 million (2010: GBP22.7 million)
A copy of the Annual Report for the year ended 31 January 2012
is being posted to shareholders today and is available on the
Company's website at www.oracp.com.
-Ends-
Enquiries:
ORA Capital Partners Limited
Richard Griffiths - Executive Chairman
Michael Bretherton - Finance Director +44 (0)1481 738 724
Smith & Williamson Corporate Finance
Limited
Azhic Basirov
Siobhan Sergeant +44 (0)20 7131 4000
CHAIRMAN'S STATEMENT
Adverse conditions in financial markets during the year had a
negative impact on the carrying values of ORA's quoted strategic
portfolio business holdings which gave rise to unrealised
revaluation losses of GBP24.8 million. As a result, the Group
incurred a loss before tax of GBP22.1 million for the year ended 31
January 2012 compared with a profit of GBP29.3 million in the
previous year.
However, 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. These businesses
remain well capitalised and are managed with disciplined cost
control.
Proceeds from portfolio investment disposals in the year
amounted to GBP12.5 million. As a mechanism for enhancing capital
efficiency, part of those proceeds went towards completing the
buy-back and cancellation of a further 12.9 million shares in ORA
at a cost of GBP14.9 million, representing an average buy-back
price of 127.9p per share.
Net assets attributable to holders of ORA at 31 January 2012
were GBP92.7 million (equivalent to 178.1p per share) compared with
GBP130.0 million (equivalent to 204.4p per share) at the 31 January
2011 year end. The reduction in net assets per share reflects the
loss generated in the year, partially offset by the beneficial
impact of the lower share capital base as reduced by share
buy-backs, share cancellations and cancellation of treasury
shares.
The Group continues to benefit from a solid balance sheet at 31
January 2012 with cash balances of GBP2.0m million and a GBP3.1m
disposal proceeds cash in transit receivable, together with liquid
trading investments of GBP11.0 million inclusive of derivative
trading assets and liabilities (31 January 2011: cash balances of
GBP9.0 million and comparable liquid trading investments of GBP22.7
million).
Cash balances reduced by GBP7.0 million in the year mainly
reflecting the buy-back of shares in ORA at a cost of GBP14.9
million and the purchase for GBP0.4 million of own shares for the
ORA Capital Partners Employee Share Trust, partially offset by net
cash inflows of GBP8.2 million from portfolio investment disposals
less purchases, together with a small cash inflow from operations
of GBP0.2 million. In addition, trading securities' disposals less
purchases, generated net proceeds receivable of GBP2.9 million.
GBP3.1 million of the proceeds were still in transit and not
received until 2 February 2012 and have therefore been excluded
from end of year cash balances.
Business model
ORA is a holding and management company whose principal activity
is the development and growth of trading companies within its
business portfolio, the current focus of which is on high growth
technology, resource and financial service opportunities . We
usually take minority stakes and always invest from our own balance
sheet so that we are able to work on a longer time frame of in
excess of five years to generate value realisations for our
shareholders. Our portfolio businesses tend to be headquartered in
Europe but most also have substantial revenues potential in the
wider international markets. ORA seeks to deliver capital growth by
working with portfolio company managements, often through Board
representation, to devise and implement development strategies that
deliver significant value accretion over the medium to long
term.
Investment portfolio performance
The loss before tax attributable to our Business Portfolio
Return and Advisory Fees sector was GBP24.3 million for the year
compared with a profit of GBP28.3 million for the year to 31
January 2011. This loss includes unrealised revaluation losses of
GBP24.8 million (2011: gain of GBP26.2m) on the carrying values of
ORA's quoted strategic holdings, partially offset by a GBP1.5
million profit (2011: profit of GBP2.9m) realised in the year on
investment portfolio disposals.
Proceeds from investment portfolio disposals amounted to GBP12.5
million which realised an overall profit of GBP11.0 million, of
which GBP1.5 million arose as a profit in the year, coupled with
GBP9.5 million of previously recorded unrealised gains generated in
earlier periods (2011: proceeds GBP25.1 million and an overall
profit of GBP23.8 million of which GBP2.9 million arose in the
year).
Additional investment in strategic portfolio businesses was
GBP4.2 million (2011: GBP2.1 million) and transfers of GBP9.8
million were made from short term investments to strategic
portfolio investments (2011: GBP nil) in respect of holdings where
ORA has an aspiration to own the shares for at least the medium
term whilst the entity is developed to exploit key commercial
opportunities by a credible management team.
ORA now has 13 portfolio businesses of which 11 are quoted on
AIM and the remaining 2 are unquoted (2011: 9 portfolio businesses
of which 6 were quoted and 3 were unquoted). The carrying value of
strategic portfolio business holdings at 31 January 2012 was
GBP76.4 million, of which GBP73.4 million was represented by quoted
holdings and GBP3.0 million by unquoted holdings (2011: GBP98.1
million of which GBP94.6 million was represented by quoted holdings
and GBP3.5 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 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. Quantum dots have multiple
potential applications in many different industrial and consumer
segments, delivering significant benefits including reduced power
consumption, improved performance, lower manufacturing costs and
product miniaturization. Nanoco is focussing on key markets
covering LED lighting, displays and solar cells. 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's
transition from a research-based company to a commercially focused,
high-tech manufacturing business is continuing apace. The company's
existing commercial agreements are proceeding well and it is in
discussions with further potential customers. It is now working to
deliver a 1kg batch of green cadmium-free quantum dots to a
Japanese customer, attracting a US$2 million milestone payment.
Nanoco is well capitalised and held cash balances of GBP14.4
million at 31 January 2012 (31 July 2011: GBP17.1 million). ORA
retains a holding of 18.9 per cent. in Nanoco.
Obtala Resources Limited (Obtala) is a Guernsey based and AIM
listed holding company of a mining and exploration and development
group whose assets are all based in Africa. Obtala's principal
interests are in diamond exploration and production through its
Paragon Diamonds Limited subsidiary (Paragon) as well as the
exploration and development of mineral resource assets, including
iron ore and tin through its significant shareholding in Bushveld
Minerals Limited (Bushveld). Obtala is also establishing a
self-sustainable forestry and agricultural business through its
Montara Continental Limited (Montara) subsidiary. Paragon's core
activities centre on two diamondiferous kimberlites located in
Lesotho, one of the most prolific diamond producing regions in the
world, and for which it is advancing both development projects
towards diamond production. Bushveld's core asset, the Mokopane
iron project, is a recently discovered, potentially world class
magnetite-hosted iron ore deposit in the Limpopo Province of South
Africa. The company is undertaking a pre-feasibility study,
mineralogical and metallurgical test-work, and an advanced drilling
campaign to expand the resource base. The project is expected to
provide a significant source of iron ore in South Africa. Montara
is developing forestry and agriculture interests in Mozambique and
Tanzania. The company has recently signed its first timber contract
to supply wooden railway sleepers to the Mozambican railway
authorities and has also initiated planting of its
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