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DJ Lombard Capital PLC Annual Financial Report

 
TIDMLCAP 
 
Lombard Capital PLC 
 
                Final results for the year ended 31 March 2016 
 
Chairman's Statement 
 
Dear Shareholders 
 
I was appointed to the Board of the Company on 15th January 2016, just two and 
a half months before the financial year end. 
 
I do not propose to dwell on the time before my appointment other than to say 
that I have instigated a programme of selling non-core assets when the 
opportunity arises. 
 
I am tasked with revitalising the Company and I have engaged in raising 
additional finance to support future developments within the financial services 
sector. To date GBP45,000 has been raised through the issue of Convertible 
Unsecured Loan Notes. The holders of the Loan Notes have made written 
applications to convert all of their Loan Notes into Ordinary Shares and their 
requests are being processed. Warrant holders have given undertakings to 
exercise their Warrants to the extent that there will be GBP75,000 raised by the 
issue of Ordinary Shares during September 2016. The Board have agreed the sale 
of an investment asset that will raise a further GBP23,310 and have discussed the 
approval of the sale of a second investment asset and await a formal offer. 
 
The Company is currently considering the issuance of a reinsurance based bond 
to provide bondholders with stable income and limited risk to capital. The 
Company expects to make an announcement in the near future. 
 
I look forward to the future with enthusiasm and thank all my colleagues and 
our professionals for their support and advice. 
 
I also thank you all as shareholders for your continuing support. 
 
David Grierson 
Chairman 
Lombard Capital PLC 
 
The directors of Lombard Capital Plc accept responsibility for this 
announcement. 
 
 
For further information please contact: 
 
Brent Fitzpatrick 
Tel:  07718 883813 
 
ISDX Corporate Adviser: 
Alfred Henry Corporate Finance Limited 
Nick Michaels:  020 7251 3762 
 
 
Statutory Information 
 
The financial information set out below does not constitute the Group's 
statutory accounts for the year ended 31 March 2016 but is derived from those 
accounts. 
 
The financial information has been extracted from the statutory accounts of 
Lombard Capital Plc and is presented using the same accounting policies, which 
have not yet been filed with the Registrar of companies, but on which the 
auditors, Jeffreys Henry LLP, gave an unqualified report on 30 August 2016. 
 
The Annual Report of Lombard Capital Plc for year ended 31 March 2016 is 
available upon request from the Company's registered office at 19 Goldington 
Road, Bedford, England, MK40 3JY. 
 
 
Income Statement 
for the year ended 31 March 2016 
 
. 
 
                                                         2016           2015 
 
                                                            GBP              GBP 
 
Continuing operations: 
 
Investment income                                          34            211 
 
 
Operating expenses                                  (119,928)       (80,344) 
 
Impairment of investments                            (47,388)              - 
 
Operating loss and loss before taxation             (167,282)       (80,133) 
 
Taxation expense                                            -              - 
 
Loss for the year, attributable to owners of        (167,282)       (80,133) 
the Company 
 
Loss per share attributable to owners of the            Pence          pence 
Company during the year 
 
Basic and diluted 
 
Total and continuing operations                         (8.3)          (4.2) 
 
 
 
Statement of Financial Position 
as at 31 March 2016 
 
                                                           2016       2015 
 
                                                              GBP          GBP 
 
Non-current assets 
 
Available for sale investments                          135,810    235,000 
 
Current assets 
 
Trade and other receivables                               7,800        220 
 
Cash and cash equivalents                                 2,668     57,036 
 
Total current assets                                     10,468     57,256 
 
Total assets                                            146,278    292,256 
 
Equity 
 
Share capital                                           192,165    191,815 
 
Share premium                                           767,514    755,614 
 
Share option reserve                                     26,320          - 
 
Investment revaluation reserve                          100,184    151,986 
 
Retained earnings                                     (988,371)  (821,089) 
 
Equity attributable to owners of the                     97,812    278,326 
Company and total equity 
 
Current liabilities 
 
Trade and other payables                                 48,466     13,930 
 
Total equity and liabilities                            146,278    292,256 
 
 
Statement of Cashflows 
for the year ended 31 March 2016 
 
                                                          2016        2015 
                                                             GBP           GBP 
 
Operating activities 
 
(Loss)/Profit before tax                             (167,282)    (80,133) 
 
Impairment of investments -                             45,698           - 
reclassification from reserves 
 
Impairment of investments - recognised                   1,690           - 
in the year 
 
Investment income                                         (34)       (211) 
 
Share based payment                                     26,320 
 
(Increase)/decrease in trade and other                 (7,580)       (220) 
receivables 
 
(Decrease)/increase in trade and other                  34,536    (15,032) 
payables 
 
Net cash flow from operating activities               (66,652)    (95,596) 
 
Investing activities 
 
Investment income                                           34         211 
 
Net cash flow from investing activities                     34         211 
 
Financing activities 
 
Proceeds from issue of shares                           12,250           - 
 
Net cash flow from financing activities                 12,250           - 
 
Net (decrease)/increase in cash and cash              (54,368)    (95,385) 
equivalents 
 
Cash and cash equivalents at start of                   57,036     152,421 
year 
 
Cash and cash equivalents at the end of                  2,668      57,036 
the year/period 
 
Cash and cash equivalents comprise: 
 
Cash and cash in bank                                    2,668      57,036 
 
Cash and cash equivalents at end of year                 2,668      57,036 
/period 
 
 
 
 
Notes to the Financial Statements 
for the year ended 31 March 2016 
 
1 General information 
 
Lombard Capital Plc is a limited company incorporated and domiciled in the 
United Kingdom.  The registered office is 19 Goldington Road, Bedford, MK40 
3JY. 
 
2 Principal accounting policies 
 
The principal Accounting Policies applied in the preparation of these Financial 
Statements are set out below.  These policies have been consistently applied to 
all the periods presented, unless otherwise stated. 
 
Basis of preparation 
 
The financial statements of the Company have been prepared in accordance with 
International Financial Reporting Standards (IFRS), and IFRIC interpretations 
as adopted in the European Union and as applied in accordance with the 
provisions of the Companies Act 2006, and under the historical cost convention. 
 
The preparation of financial statements in conformity with IFRSs requires the 
use of certain critical accounting estimates.  It also requires management to 
exercise its judgement in the process of applying the Company's accounting 
policies.  The areas involving a higher degree of judgement or complexity, or 
areas where assumption and estimates are significant to the Financial 
Statements, are disclosed later in these accounting policies. 
 
The financial statements are presented in sterling (GBP). 
 
Going concern 
 
During the period the Company made a loss of GBP167,282.  The cash balance at the 
year end was GBP2,668 and no revenue has been generated since the year end, so at 
the time of signing of these accounts there are insufficient funds for the next 
12 months and beyond. 
 
The Chairman's statement has explained the current fundraising activities, 
therefore, the directors have formed the opinion that with the eradication of 
debt and the inflow of funds from the conversion of warrants and the sale of 
investment assets that the Company will secure adequate funds for the working 
capital requirements of for the Company in the foreseeable future.  Further, 
this will ensure that adequate arrangements will be in place to enable the 
settlement of their financial commitments as and when they fall due. 
 
For this reason, the Directors continue to adopt the going concern basis in 
preparing the financial statements. Whilst there are inherent uncertainties in 
relation to future events, and therefore no certainty over the outcome of the 
matters described, the Directors consider that, based on financial projections 
and dependent on the success of their efforts to complete these activities, the 
Company will be a going concern for the next 12 months. 
 
Changes in accounting policy 
 
At the date of authorisation of these financial statements the following 
standards and interpretations were in issue but not yet effective and therefore 
have not been applied in these financial statements: 
 
IFRS 5                                                 Non current assets held 
for sale and discontinued operations 
 
IFRS 7                                                 Financial instruments 
 
IFRS 9                                                 Financial instruments 
 
IFRS 10   (amended)                             Consolidated Financial 
Statements 
 
IFRS 11   (amended)                             Joint Arrangements 
 
IFRS 12   (amended)                             Disclosure of Interests in 
Other Entities 
 

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DJ Lombard Capital PLC Annual Financial Report -2-

IFRS 14                                               Regulatory deferral 
accounts 
 
IFRS 15                                               Revenue from Contracts 
with Customers 
 
IAS 1 (amended)                                  Presentation of Items of Other 
Comprehensive Income 
 
IAS 16 & 41 (amended)                         Property, Plant and Equipment 
 
IAS 19                                                 Employee benefits 
 
IAS 27 (amended)                                Separate Financial Statements 
 
IAS 28 (amended)                                 Investments in Associates and 
Joint Ventures 
 
IAS16 & 38 (amended)                          Intangible assets 
 
IAS 34                                                 Interim financial 
reporting 
 
In addition, there are certain requirements of Improvements to IFRSs which are 
not yet effective. 
 
The Directors anticipate that the adoption of these standards and 
interpretations in future periods will have no material impact on the financial 
statements of the Company. 
 
Key estimates and assumptions 
 
The Company makes estimates and assumptions concerning the future.  The 
resulting accounting estimates will, by definition, seldom equal the related 
actual results. 
 
The only estimates and assumptions that may cause material adjustment to the 
carrying value of assets and liabilities relate to the valuation of unquoted 
investments.  These are valued in accordance with the techniques set out in the 
accounting policy for 'Available for sale investments' on page 11. 
 
Taxation 
 
The tax expense represents the sum of the tax currently payable and deferred 
tax. 
 
Current tax is the tax currently payable based on taxable profit for the 
period.  Taxable profit differs from net profit as reported in the income 
statement because it excludes items of income or expenses that are taxable or 
deductible in other years and it further excludes items that are never taxable 
or deductible.  The Company's liability for current tax is calculated using tax 
rates that have been enacted or substantively enacted by the balance sheet 
date. 
 
Deferred tax is the tax expected to be payable or recoverable on differences 
between the carrying amounts of assets and liabilities in the financial 
statements and the corresponding tax bases used in the computation of taxable 
profit, and is accounted for using the balance sheet liability method. 
Deferred tax liabilities are generally recognised for all taxable temporary 
differences and deferred tax assets are recognised to the extent that it is 
probable that taxable profits will be available against which deductible 
temporary differences can be utilised.  Such assets and liabilities are not 
recognised if the temporary difference arises from the initial recognition of 
goodwill or from the initial recognition (other than in a business combination) 
of other assets and liabilities in a transaction that affects neither the 
taxable profit nor the accounting profit. 
 
Deferred tax liabilities are recognised for taxable temporary differences 
arising on investments in subsidiaries and associates, and interest in joint 
ventures, except where the group is able to control the reversal of the 
temporary difference and it I probable that the temporary difference will not 
reverse in the foreseeable future. 
 
The carrying amount of deferred tax assets is reviewed at each balance sheet 
date and reduced to the extent that it is no longer probable that the temporary 
difference will not reverse in the foreseeable future. 
 
Current and deferred tax assets and liabilities are calculated at tax rates 
that are expected to apply to their respective period of realisation, provided 
they are enacted or substantively enacted at the balance sheet date.  Changes 
in deferred tax assets or liabilities are recognised as a component of tax 
expense in the profit or loss income statement, except where they relate to 
items that are recognised in other comprehensive income in which case the 
related deferred tax is also charged or credited directly to equity. 
 
Segmental reporting 
 
A segment is a distinguishable component of the Company's activities from which 
it may earn revenues and incur expenses, whose operating results are regularly 
reviewed by the Company's chief operating decision maker to make decisions 
about the allocation of resources and assessment of performance and about which 
discrete financial information is available. 
 
As the chief operating decision maker reviews financial information for and 
makes decisions about the Company's investment activities as a while, the 
directors have identified a single operating segment, that of investing in or 
acquiring assets, business or companies in the soft commodities sector. 
 
Financial assets 
 
The Company's financial assets comprise investments held for trading, 
associated undertakings, cash and cash equivalents and loans and receivables. 
 
Available for sale Investments 
 
Investments are initially measured at fair value plus incidental acquisition 
costs. Subsequently they are measured at fair value in accordance with IAS 39. 
In respect of quoted investments, this is either the bid price at the period 
end date of the last traded price or the last traded price, depending on the 
convention of the exchange on which the investment is quote, with no deduction 
for any estimated future selling cost.  Unquoted investments are valued by the 
directors using primary valuation techniques such as recent transactions, last 
price and net asset value. 
 
Investments are recognised as available-for-sale financial assets.  Gains and 
losses on measurement are recognised in other comprehensive income except for 
impairment losses and foreign exchange gains and losses on monetary items 
denominated in a foreign currency, which are recognised directly in profit or 
loss.  Where the investment is disposed of or is determined to be impaired the 
cumulative gain or loss previously recognised in other comprehensive income is 
reclassified to profit or loss. 
 
The Company assesses at each period end date whether there is any objective 
evidence that a financial assets or group of financial assets classified as 
available-for-sale has been impaired.  An impairment loss is recognised if 
there is objective evidence that an event or events since initial recognition 
of the asset have adversely affected the amount or timing of future cash flows 
from the asset.  A significant or prolonged decline in the fair value of a 
security below its cost shall be considered in determining whether the asset is 
impaired. 
 
When a decline in the fair value of a financial asset held as 
available-for-sale has been previously recognised in other comprehensive income 
and there is objective evidence that the asset is impaired, the cumulative loss 
is removed from other comprehensive income and recognised in profit or loss. 
The loss is measured as the difference between the cost of the financial asset 
and its current fair value less any previous impairment. 
 
Cash and cash equivalents 
 
Cash and cash equivalents comprise cash in hand and current and deposit 
balances deposits at banks, together with other short-term highly liquid 
investments that are readily convertible into known amounts of cash and which 
are subject to an insignificant risk of changes in value. 
 
Equity 
 
An equity instrument is any contract that evidences a residual interest in the 
assets of the company after deducting all of its liabilities.  Equity 
instruments issued by the Company are recorded at the proceeds received net of 
direct issue costs. 
 
The share premium account represents premiums received on the initial issuing 
of the share capital.  Any transaction costs associated with the issuing of 
shares are deducted from share premium, net of any related income tax benefits. 
 
The investment revaluation reserve represents the difference between the 
purchase costs of the available-for-sale investments less any impairment charge 
and the market value of those investments at the accounting date. 
 
Retained earnings include all current and prior period results as disclosed in 
the statement of comprehensive income. 
 
Financial liabilities 
 
Financial liabilities are recognised in the Company's balance sheet when the 
Company becomes a party to the contractual provisions of the instrument.  All 
interest related charges are recognised as an expense in finance cost in the 
income statement using the effective interest rate method. 
 
The Company's financial liabilities comprise trade and other payables. 
 
Trade payables are recognised initially at their fair value and subsequently 
measured at amortised cost less settlement payments. 
 
3 Earnings per share 
 
The basic and diluted earnings per share is calculated by dividing the loss 
attributable to owners of the Company by the weighted average number of 
ordinary shares in issue during the year. 
 
                                                        2016        2015 
                                                           GBP           GBP 
 
Earnings 
 
Loss for the purposes of basic and fully           (167,282)    (80,133) 
diluted loss per share 
 
Number of shares 
 
Weighted average number of shares for 
calculating basic and fully diluted earnings       2,026,210   1,918,150 
per share 
 
                                                        2016        2015 
 
                                                       Pence       pence 
 
Earnings per share 
 
Basic and fully diluted loss per share                 (8.3)       (4.2) 
 
During the year the company granted 700,000 share options. 
 
After the year end the company issued up to GBP100,000 warrants. 
 
 
 
END 
 

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