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DJ EcoVista PLC: Audited Annual Results for the year ended 31 August 2019

 
 EcoVista PLC (EVTP) 
EcoVista PLC: Audited Annual Results for the year ended 31 August 2019 
 
05-March-2020 / 15:08 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
    EcoVista PLC (EVTP) 
 
    Audited Annual Results for the year ended 31 August 2019 
 
   The issuer is solely responsible for the content of this announcement. 
 
    ECOVISTA PLC 
 
    ("Ecovista" or "the company") 
 
    CHAIRMAN'S STATEMENT 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
 I present to you my chairman's statement for the year 1st September 2018 to 
        31st August 2019. 
 
        Overview 
 
      The accounts for the year to 31 August 2019 showed a loss of GBP368,403, 
   comparable to the loss for the year ended 31 August 2018 of GBP238,454. The 
        group's investments in properties were valued during the year, which 
  resulted in an increase in value by GBP125,285. During the financial period, 
we have seen 100 Rye Street completed and Ecovista has subsequently sold the 
        subsidiary 100 Rye Street Ltd. 
 
 During the year the group was unable to raise any new equity, but a further 
     GBP50,000 in convertible loan notes was raised. Due to the uncertainty of 
       Brexit, the general uncertainty of the markets and the demise of both 
stockbrokers that the company has used to raise capital, it has been a tough 
 year. The business relies on access to cash, either through debt or equity, 
   and with the Brexit uncertainty we have been unable to raise the funds to 
    either complete or proceed with any new deals. This has seen our balance 
 sheet reduce from GBP1,390,973 to GBP841,889 during the year to 31 August 2019. 
 
   The board remains committed to continue keeping a tight rein on costs and 
        are currently in discussion with a potential merger partner. 
 
        Current operations 
 
        Willside Limited 
 
  Willside Limited successfully obtained planning permission for nine houses 
   on a parcel of land that the company had under option. Unfortunately, the 
 uncertainty of Brexit made it impossible to exercise the option in order to 
        build out the project. 
 
        Start Hill Limited (80% owned) 
 
        Start Hill Limited owns the plot next to the Willside plot. There is 
        currently a 4-bedroom house called Marstons on 0.3 hectares which is 
  currently rented out on an assured shorthold tenancy. The company plans to 
    apply for planning permission for several properties, with the knowledge 
        that permission has been given for nine houses next door. 
 
        Cignella SRL 
 
Ecovista owns 13% of the shares in Cignella SRL, an Italian company, and has 
        an option to buy the balance of the equity for &euro4m. 
 
        Outlook 
 
    The group continues to see deal flow and is currently looking at several 
        potential development sites in and around the London, Essex and 
        Hertfordshire area. 
 
    The directors believe that, now the Brexit decision has been made, there 
 will be more certainty going forward, although the ability to raise further 
  funds through share issues has somewhat diminished. The board continues to 
       seek further investment though asset-backed debt or by merging with a 
        cash-rich entity. 
 
The board view the year ahead with hope that, now Brexit is near completion, 
  the market for funding improves and we can take the opportunities that are 
        presenting themselves. 
 
  The directors do not consider it necessary to comment on the impact of the 
       business on the environment, nor to provide further information about 
        employees than is given elsewhere in these financial statements. 
 
David Barnett - Chairman 
 
        Date: 28 February 2020 
 
ECOVISTA PLC 
 
GROUP STRATEGIC REPORT 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
The directors present their strategic report of Ecovista plc ("the Company") 
       and its subsidiaries ("the group") for the year ended 31 August 2019. 
 
REVIEW OF BUSINESS 
 
      Review of the business is given in the Chairman's Statement on page 2. 
 
FUTURE DEVELOPMENTS 
 
       The Chairman's statement on page 2 provides information on the future 
        outlook of the group. 
 
        KEY PERFORMANCE INDICATORS 
 
                                     2019       2018 
                                      GBP          GBP 
Investment properties              2,232,375  2,107,090 
Net current assets/ (liabilities)  (442,238)  (279,871) 
Cash and cash equivalents              9,143     75,637 
Debt/ equity ratio                       35%        30% 
 
PRINCIPAL RISKS AND UNCERTAINTIES 
 
        The group's strategy is to follow an appropriate risk policy, which 
        effectively manages exposures related to the achievement of business 
 objectives. The board is responsible for approving the group's strategy and 
        determining the appropriate level of risk. 
 
        Business performance risk 
 
     Business performance risk is the risk that the group may not perform as 
 expected, either due to internal factors or due to competitive pressures in 
the markets in which they operate. The group seeks investments in properties 
with development potential. The price at which investments are made, and the 
 price which the group may realise for its investment, will be influenced by 
a large number of factors, some specific to the group and its operations and 
  some which are generic to the sector. The group closely monitors the local 
      markets and seeks to invest in properties where it believes there is a 
   significant advantage to be gained by developing multiple properties on a 
  single site. This is considered a way to minimise the project risk of loss 
        or impairment of investments. 
 
        Business continuity risk 
 
 The group may not be able to identity suitable investment opportunities and 
        there is no guarantee that such opportunities will be available. 
     Furthermore, the group may incur costs in conducting due diligence into 
potential investment opportunities that may not result in an investment. The 
group seeks to mitigate this risk by keeping close contact with local agents 
and continually assessing development opportunities within the chosen market 
        as well as leveraging management's market knowledge. 
 
        FINANCIAL INSTRUMENTS 
 
     The group's principal financial instruments comprise cash, receivables, 
        loans, creditors and accruals. The main risks associated with these 
        financial assets and liabilities are set out below: 
 
        Credit risk 
 
        The group's credit risk is primarily attributable to its loans and 
        receivables. The amounts presented in the balance sheet are net of 
    allowances for doubtful receivables. An allowance for impairment is made 
 when there is an identified loss event which, based on previous experience, 
        is evidence of a reduction in the recoverability of the cash flows. 
 
   The credit risk on liquid funds is limited because the counterparties are 
        banks with high credit-rating agencies. 
 
    ECOVISTA PLC 
 
    GROUP STRATEGIC REPORT 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
        Liquidity risk 
 
The group's liquidity is managed by the directors through regular assessment 
  of required cash levels. It will be necessary to raise additional funds in 
the future by a further issue of ordinary shares or by other means. However, 
       neither the ability to fund future investments and overheads, nor the 
     ability of investments to produce a suitable return, can be guaranteed, 
     particularly in the current economic climate. Further details regarding 
  financial instruments can be found in note 19 to the financial statements. 
 
ON BEHALF OF THE BOARD: 
 
David Barnett - Director 
 
        Date: 28 February 2020 
 
    ECOVISTA PLC 
 
REPORT OF THE DIRECTORS 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
     The directors present their report with the financial statements of the 
        company and the group for the year ended 31 August 2019. 
 
PRINCIPAL ACTIVITY 
 
Ecovista plc is a NEX-listed investment company, whose principal activity is 
        to acquire property for development and subsequent resale. 
 
DIVIDENDS 
 
   No dividends will be distributed for the year ended 31 August 2019 (2018: 
         GBPnil). 
 
DIRECTORS 
 
Ken Jones has held office throughout the period from 1 September 2018 to the 
       date of this report. Other changes in directors holding office are as 
        follows: 
 
        David Barnett was appointed on 17 January 2019 
 
        Sarah Hornsnell was appointed on 17 January 2019 
 
        Louise Hardwidge resigned on 30 April 2019 
 
DIRECTORS' REMUNERATION 
 
                          31.8.19             31.8.18 
                            GBP                   GBP 
Ken Jones                 18,000              16,000 
David Barnett             8,000               21,500 
Sarah Horsnell            8,000               - 
Louise Hardwidge          11,500              - 
 
45,500 37,500 
 
        The company did not make any pension contributions on behalf of the 
        directors. 
 
DIRECTORS' INTERESTS 
 
              31.8.19                31.8.18 
             Ordinary               Ordinary 
              shares                 shares 
Ken Jones   -                      - 
David       -                      - 
Barnett 
Sarah       -                      - 
Horsnell 
Louise      50,000,000             50,000,000 
Hardwidge 
 
50,000,000 50,000,000 
 
SHARES AND LISTING 
 
The company's ordinary shares are listed on the NEX Growth Market ('ticker': 
EVTP). Details of the nominated advisor and brokers are presented on the 
company information on page 1. The closing price of the company's shares at 
31 August 2019 was 0.0115p (2018: 0.05p). 
 
SUBSTANTIAL SHAREHOLDINGS 
 
As at 31 January 2020, the company is aware of two shareholders with 

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DJ EcoVista PLC: Audited Annual Results for the year -2-

individual holdings of more than 3% of the company's issued share capital: 
 
· Hubwise Securities held 571,428,571 shares (10.49%) 
 
· Elite CAM Balanced Portfolio Fund held 428,571,428 shares (7.87%) 
 
FINANCIAL RISK MANAGEMENT 
 
Financial risk management is discussed in note 19 of the financial 
statements. 
 
    ECOVISTA PLC 
 
    REPORT OF THE DIRECTORS (continued) 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
GOING CONCERN 
 
After reviewing the group's forecasts and projections, the directors have a 
reasonable expectation that the group has adequate resources to continue in 
operational existence for the foreseeable future. The group therefore 
continues to adopt the going concern basis in preparing its consolidated 
financial statements. 
 
FAIR VALUE ESTIMATION 
 
The directors consider that the carrying amount of the group's financial 
assets and liabilities approximate their fair realisable value at each 
balance sheet date and that such value equates to their fair value. 
 
STATEMENT OF DIRECTORS' RESPONSIBILITIES 
 
       The directors are responsible for preparing the annual report and the 
     financial statements in accordance with applicable law and regulations. 
 
 Company law requires the directors to prepare financial statements for each 
    financial year. Under that law the directors have elected to prepare the 
   financial statements in accordance with International Financial Reporting 
 Standards as adopted by the European Union. Under company law the directors 
    must not approve the financial statements unless they are satisfied that 
   they give a true and fair view of the state of affairs of the company and 
        the group and of the profit or loss of the group for that period. In 
        preparing these financial statements, the directors are required to: 
 
- select suitable accounting policies and 
  then apply them consistently; 
- make judgements and accounting estimates 
  that are reasonable and prudent; 
-    prepare the financial statements on the going concern basis 
     unless it is inappropriate to presume that the company will 
                                           continue in business. 
 
  The directors are responsible for keeping adequate accounting records that 
        are sufficient to show and explain the company's and the group's 
transactions and disclose with reasonable accuracy at any time the financial 
    position of the company and the group and enable them to ensure that the 
      financial statements comply with the Companies Act 2006. They are also 
    responsible for safeguarding the assets of the company and the group and 
 hence for taking reasonable steps for the prevention and detection of fraud 
        and other irregularities. 
 
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS 
 
   So far as the directors are aware, there is no relevant audit information 
  (as defined by Section 418 of the Companies Act 2006) of which the group's 
  auditors are unaware, and each director has taken all the steps that he or 
   she ought to have taken as a director in order to make himself or herself 
   aware of any relevant audit information and to establish that the group's 
        auditors are aware of that information. 
 
AUDITORS 
 
     The auditors, Defries Weiss (Accountants) Limited, will be proposed for 
        re-appointment at the forthcoming Annual General Meeting. 
 
  This report has been prepared in accordance with the provisions of Part 15 
        of the Companies Act 2006 relating to small companies. 
 
ON BEHALF OF THE BOARD: 
 
David Barnett - Director 
 
        Date: 28 February 2020 
 
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF 
 
ECOVISTA PLC 
 
Qualified opinion 
 
 We have audited the financial statements of Ecovista plc group (the "parent 
   company") and its subsidiaries ("the group") for the year ended 31 August 
      2019, which comprise the consolidated statement of profit or loss, the 
consolidated statement of profit or loss and other comprehensive income, the 
      consolidated statement of financial position, the company statement of 
    financial position, the consolidated statement of changes in equity, the 
  company statement of changes in equity, the consolidated statement of cash 
        flows, and notes to the financial statements, including a summary of 
 significant accounting policies. The financial reporting framework that has 
       been applied in their preparation is applicable law and International 
 Financial Reporting Standards (IFRSs) as adopted by the European Union and, 
as regards the parent company financial statements, as applied in accordance 
        with the provisions of the Companies Act 2006. 
 
       In our opinion, except for the effects of the matter described in the 
        paragraph below, headed 'basis for qualified opinion': 
 
    - the financial statements give a true and fair view of the state of the 
 group's and of the parent company's affairs as at 31 August 2019 and of the 
        group's loss for the year then ended; 
 
  - the group financial statements have been properly prepared in accordance 
        with IFRSs as adopted by the European Union; 
 
    - the parent company financial statements have been properly prepared in 
    accordance with IFRSs as adopted by the European Union and as applied in 
        accordance with the provisions of the Companies Act 2006; and 
 
        - the financial statements have been prepared in accordance with the 
        requirements of the Companies Act 2006. 
 
Basis for qualified opinion 
 
We have not been provided with sufficiently reliable recent evidence for the 
 market value of the group's investment in Cignella SRL, an Italian company, 
         which is stated at GBP151,806 (see note 12). There are no practicable 
        procedures we can adopt to satisfy ourselves about the value of this 
   investment and therefore we cannot express an opinion on it. We conducted 
 our audit in accordance with International Standards on Auditing (UK) (ISAs 
    (UK)) and applicable law. Our responsibilities under those standards are 
    further described in the Auditors' responsibilities for the audit of the 
 financial statements section of our report. We are independent of the group 
  in accordance with the ethical requirements that are relevant to our audit 
of the financial statements in the UK, including the FRC's Ethical Standard, 
 and we have fulfilled our other ethical responsibilities in accordance with 
  these requirements. We believe that the audit evidence we have obtained is 
    sufficient and appropriate to provide a basis for our qualified opinion. 
 
Material uncertainty about going concern 
 
We draw attention to note 25 in the financial statements, which comments on 
going concern, and we note that the group incurred a net loss of GBP368,403 
during the year, and that its current liabilities exceeded its current 
assets by GBP442,238 at the year end. As stated in note 25, these 
circumstances, along with other matters set forth in note 25, indicate a 
material uncertainty that may cast significant doubt on the group's and 
company's ability to continue as a going concern. Our opinion is not 
modified in respect of this matter. 
 
Our application of materiality 
 
Materiality for the group and company financial statements as a whole was 
set at GBP9,898 (2018: GBP69,012). This has been calculated as of the benchmark 
of net assets, which we have determined, in our professional judgement, to 
be one of the principal benchmarks within the financial statements relevant 
to members of the company in assessing financial performance of the group. 
We report to the directors all corrected and uncorrected misstatements that 
we identify during our audit with a value in excess of materiality. We also 
report to the directors any misstatements that we discover below that 
threshold if we believe they warrant reporting on qualitative grounds. 
 
An overview of the scope of our audit 
 
As part of designing our audit we determined materiality, as above, and 
assessed the risk of material misstatement in the financial statements. In 
particular, we looked at areas requiring the directors to make significant 
judgements and estimates, for example in respect of the valuation of 
properties and investments. As in all of our audits, we addressed the risk 
of management override of internal controls, including evaluating whether 
there was evidence of bias by the directors that represented a risk of 
material misstatement due to fraud. 
 
We conducted a full scope audit of the group and company numbers, with 
sufficient, appropriate audit procedures carried out on the subsidiaries for 
the purposes of the consolidation. Our audit was conducted from our office 
where the audit team was based, with regular interaction with key group 
personnel responsible for the management of the group and accounting. 
 
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF 
 
ECOVISTA PLC 
 
Key audit matters 
 
Key audit matters are those matters that, in our professional judgement, 
were of most significance in our audit of the financial statements of the 
current period and include the most significant assessed risks of material 
misstatement (whether or not due to fraud) we identified, including those 
which had the greatest effect on: the overall audit strategy; the allocation 
of resources in the audit; and directing the efforts of the engagement team. 
These matters were addressed in the context of our audit of the financial 
statements as a whole, and in forming our opinion on these matters. We have 
determined the matters described below to be the key audit matters to be 
communicated in our report. 
 
Valuation of property 
 
The valuation of the group's development property is the key component of 
the group's activities, as this valuation underpins the group's result. At 
the year end, development property was stated at GBP2,232,375 (2018: 
GBP2,107,090). The valuation of property requires significant judgement and 

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DJ EcoVista PLC: Audited Annual Results for the year -3-

estimates by management and an external valuer where applicable. The 
valuation of the group's property portfolio is inherently subjective due to, 
among other factors, the individual nature of the properties, their 
location, expected future rentals, yield data, comparable market 
transactions and project completion dates. The significance of the estimates 
and judgements involved warrants specific audit focus in this area. 
 
We responded to this matter by: 
 
· ensuring the group held good title to the properties; 
 
· confirming that the valuation approach was appropriate and challenging 
the assumptions used therein; 
 
· scrutinising internal valuations by reference to underlying market data; 
 
· challenging the categorisation of properties; 
 
· considering the disclosures made within the financial statements to 
ensure that estimates and judgements are 
 
appropriately disclosed. 
 
Valuation of investments 
 
This group has a 13% investment, valued at GBP151,806, in Cignella SRL, an 
Italian property company. Owing to the unquoted and illiquid nature of this 
investment, the assessment of value is subjective and requires a number of 
significant and complex judgements to be made by management. There is a risk 
that inaccurate judgements made in assessing the valuation of the investment 
could lead to an incorrect valuation or a failure to recognise an impairment 
to the asset. There is also a risk that management may influence the 
significant judgements in respect of the investment valuation, in order to 
meet market expectations of the overall net asset value of the group. 
 
We responded to this matter by: 
 
· confirming ownership of the investments; 
 
· obtaining management's assessment of the valuation of the investment at 
the year end and challenging the 
 
inputs and assumptions used; 
 
· obtaining any appropriate publicly available information on the 
investment; 
 
· ensuring the disclosures made in the financial statements comply with 
IFRS. 
 
Other information 
 
  The directors are responsible for the 'other information', which comprises 
    the information in the annual report, but does not include the financial 
       statements and our Report of the Auditors thereon. Our opinion on the 
financial statements does not cover the other information and, except to the 
extent otherwise explicitly stated in our report, we do not express any form 
        of assurance conclusion thereon. In connection with our audit of the 
   financial statements, our responsibility is to read the other information 
      and, in doing so, consider whether the other information is materially 
 inconsistent with the financial statements or our knowledge obtained in the 
 audit, or otherwise appears to be materially misstated. If we identify such 
material inconsistencies or apparent material misstatements, we are required 
      to determine whether there is a material misstatement in the financial 
statements or a material misstatement of the other information. If, based on 
        the work we have performed, we conclude that there is a material 
misstatement of this other information, we are required to report that fact. 
        We have nothing to report in this regard. 
 
    REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF 
 
    ECOVISTA PLC 
 
Opinions on other matters prescribed by the Companies Act 2006 
 
In our opinion, based on the work undertaken in the course of the audit: 
 
-    the information given in the Group Strategic Report and the 
    Report of the Directors for the financial year for which the 
        financial statements are prepared is consistent with the 
                                       financial statements; and 
-     the Group Strategic Report and the Report of the Directors 
          have been prepared in accordance with applicable legal 
                                                   requirements. 
 
Matters on which we are required to report by exception 
 
 In the light of the knowledge and understanding of the group and the parent 
company and its environment obtained in the course of the audit, we have not 
      identified material misstatements in the Group Strategic Report or the 
        Report of the Directors. 
 
     We have nothing to report in respect of the following matters where the 
        Companies Act 2006 requires us to report to you if, in our opinion: 
 
-   adequate accounting records have not been kept by the parent 
        company, or returns adequate for our audit have not been 
                    received from branches not visited by us; or 
-   the parent company financial statements are not in agreement 
                     with the accounting records and returns; or 
-    certain disclosures of directors' remuneration specified by 
                                            law are not made; or 
-   we have not received all the information and explanations we 
                                       require for our audit; or 
- the directors were not entitled to take advantage of the small 
    companies' exemption from the requirement to prepare a Group 
   Strategic Report or in preparing the Report of the Directors. 
 
Responsibilities of directors 
 
  As explained more fully in the Statement of Directors' Responsibilities on 
  page 6, the directors are responsible for the preparation of the financial 
 statements and for being satisfied that they give a true and fair view, and 
for such internal control as the directors determine necessary to enable the 
        preparation of financial statements that are free from material 
        misstatement, whether due to fraud or error. 
 
    In preparing the financial statements, the directors are responsible for 
     assessing the group's and the parent company's ability to continue as a 
  going concern, disclosing, as applicable, matters related to going concern 
 and using the going concern basis of accounting unless the directors either 
 intend to liquidate the group or the parent company or to cease operations, 
        or have no realistic alternative but to do so. 
 
Auditors' responsibilities for the audit of the financial statements 
 
        Our objectives are to obtain reasonable assurance about whether the 
financial statements as a whole are free from material misstatement, whether 
  due to fraud or error, and to issue a Report of the Auditors that includes 
our opinion. Reasonable assurance is a high level of assurance, but is not a 
  guarantee that an audit conducted in accordance with ISAs (UK) will always 
 detect a material misstatement when it exists. Misstatements can arise from 
       fraud or error and are considered material if, individually or in the 
      aggregate, they could reasonably be expected to influence the economic 
        decisions of users taken on the basis of these financial statements. 
 
A further description of our responsibilities for the audit of the financial 
       statements is located on the Financial Reporting Council's website at 
 www.frc.org.uk/auditorsresponsibilities. This description forms part of our 
        Report of the Auditors. 
 
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF 
 
ECOVISTA PLC 
 
Use of our report 
 
        This report is made solely to the company's members, as a body, in 
   accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit 
    work has been undertaken so that we might state to the company's members 
  those matters we are required to state to them in a Report of the Auditors 
 and for no other purpose. To the fullest extent permitted by law, we do not 
    accept or assume responsibility to anyone other than the company and the 
company's members as a body, for our audit work, for this report, or for the 
        opinions we have formed. 
 
Warren Weiss LLB, MSc, MA, FCA (Senior Statutory Auditor) 
 
for and on behalf of Defries Weiss (Accountants) Limited 
 
Statutory Auditors 
 
311 Ballards Lane 
 
London 
 
N12 8LY 
 
        Date: 28 February 2020 
 
ECOVISTA PLC 
 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
31.8.19 31.8.18 
 
Notes GBP GBP 
 
CONTINUING OPERATIONS 
 
Revenue - - 
 
Other operating income 17,400 17,400 
 
Administrative expenses (313,672) (190,614) 
 
OPERATING LOSS (296,272) (173,214) 
 
Finance costs 5 (73,633) (65,240) 
 
Finance income 5 1,556 - 
 
LOSS     6 (368,349)                  (238,454) 
BEFORE 
INCOME 
TAX 
 
Income tax 7 (54) - 
 
LOSS FOR   (368,403)                  (238,454) 
THE YEAR 
 
(Loss)/ profit attributable to: 
 
Owners of the parent (375,927) (230,910) 
 
Non-controlling interests 7,524 (7,544) 
 
(368,403) (238,454) 
 
Basic earnings per share attributable 
 
to owners of the parent company 9 -0.007p -0.004p 
 
ECOVISTA PLC 
 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
31.8.19 31.8.18 
 
GBP GBP 
 
LOSS FOR THE YEAR (368,403) (238,454) 
 
OTHER COMPREHENSIVE INCOME 
 
Item that will not be reclassified to profit or loss: 
 
Revaluation of investment property (105,934) 142,075 
 
Movement in equity reserve (74,710) - 
 
OTHER 
COMPREHENS (180,644)                  142,075 
IVE INCOME 
FOR THE 
YEAR, NET 
OF INCOME 
TAX 
 
TOTAL 
COMPREHENS (549,047)                  (96,379) 
IVE INCOME 
FOR THE 
YEAR 
 
Total comprehensive income attributable to: 
 
Owners of the parent (549,047) (88,835) 
 
Non-controlling interests - (7,544) 
 
(549,047) (96,379) 
 
ECOVISTA PLC 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
31 AUGUST 2019 
 
31.8.19 31.8.18 
 
Notes GBP GBP 
 
ASSETS 
 
NON-CURRENT ASSETS 
 
Property, plant and equipment 10 532,375 2,107,090 
 
Investment property 11 1,700,000 - 
 
Investments 12 151,806                  508,616 
 
2,384,181 2,615,706 
 
CURRENT ASSETS 
 
Trade and other receivables 13 412,496 9,623 
 
Cash and cash equivalents 14 9,143 75,637 
 
421,639 85,260 
 
TOTAL ASSETS 2,805,820 2,700,966 
 
EQUITY 
 
SHAREHOLDERS' EQUITY 
 
Called up share capital 15 181,760 181,760 
 
Share premium 16 2,918,687 2,918,687 
 

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DJ EcoVista PLC: Audited Annual Results for the year -4-

Other reserves 16 - 74,710 
 
Fair value reserve 16 36,141 142,075 
 
Retained earnings 16 (2,294,699) (1,918,715) 
 
841,889 1,398,517 
 
Non-controlling interests - (7,544) 
 
TOTAL EQUITY 841,889 1,390,973 
 
LIABILITIES 
 
NON-CURRENT LIABILITIES 
 
Trade and other payables 17 1,100,000 944,862 
 
Deferred tax 7 54 - 
 
1,100,054 944,862 
 
CURRENT LIABILITIES 
 
Trade and other payables 17 63,877 67,694 
 
Financial liabilities - borrowings 
 
 Interest 17 800,000                   297,437 
 bearing 
 loans 
 and 
 borrowin 
 gs 
 
863,877 365,131 
 
TOTAL LIABILITIES 1,963,931 1,309,993 
 
TOTAL EQUITY AND LIABILITIES 2,805,820 2,700,966 
 
ECOVISTA PLC 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued 
 
31 AUGUST 2019 
 
      The financial statements were approved by the Board of Directors on 28 
        February 2020 and were signed on its behalf by: 
 
David Barnett - Director 
 
ECOVISTA PLC 
 
COMPANY STATEMENT OF FINANCIAL POSITION 
 
31 AUGUST 2019 
 
31.8.19 31.8.18 
 
Notes GBP GBP 
 
ASSETS 
 
NON-CURRENT ASSETS 
 
Property, plant and equipment - - 
 
Investment property - - 
 
Investments 12 152,087                  508,897 
 
152,087 508,897 
 
CURRENT ASSETS 
 
Trade and other receivables 13 2,045,185 1,816,142 
 
Cash and cash equivalents 14 1,403 63,364 
 
2,046,588 1,879,506 
 
TOTAL ASSETS 2,198,675 2,388,403 
 
EQUITY 
 
SHAREHOLDERS' EQUITY 
 
Called up share capital 15 181,760 181,760 
 
Share premium 16 2,918,687 2,918,687 
 
Other reserves 16 - 74,710 
 
Retained earnings 16 (2,053,019) (1,780,922) 
 
TOTAL EQUITY 1,047,428 1,394,235 
 
LIABILITIES 
 
NON-CURRENT LIABILITIES 
 
Trade and other payables 17 1,100,000 944,862 
 
CURRENT LIABILITIES 
 
Trade and other payables 17 51,247 49,307 
 
TOTAL LIABILITIES 1,151,247 994,169 
 
TOTAL EQUITY AND LIABILITIES 2,198,675 2,388,403 
 
      The financial statements were approved by the Board of Directors on 28 
        February 2020 and were signed on its behalf by: 
 
David Barnett - Director 
 
ECOVISTA PLC 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
Called up 
 
share Retained Share Equity 
 
capital earnings premium reserve 
 
GBP GBP GBP GBP 
 
Balance at 1 September 2017 173,190 (1,687,805) 2,683,045 14,552 
 
Loss for the year - (230,910) - - 
 
Other comprehensive income - (57) - - 
 
Changes in equity 
 
Issue of share capital 8,570 - 235,642 - 
 
Movement in convertible loan notes - - - 60,158 
 
Balance at 31 August 2018 181,760 (1,918,772) 2,918,687 74,710 
 
Loss for the year - (375,927) - - 
 
Changes in equity 
 
Movement in equity reserve - - - (74,710) 
 
Balance at 31 August 2019 181,760 (2,294,699) 2,918,687 - 
 
Fair 
 
value Total for Non-controlling Total 
 
reserve the group interests equity 
 
GBP GBP GBP GBP 
 
Balance at 1 September 2017 - 1,182,982 - 1,182,982 
 
Loss for the year - (230,910) (7,544) (238,454) 
 
Other comprehensive income - (57) - (57) 
 
Changes in equity 
 
Issue of share capital - 244,212 - 244,212 
 
Movement in convertible loan notes - 60,158 - 60,158 
 
Revaluation of investment property 142,075 142,075 - 142,075 
 
Balance at 31 August 2018 142,075 1,398,460 (7,544) 1,390,916 
 
(Loss)/ profit for the year - (375,927) 7,524 (368,403) 
 
Other movement - - 20 20 
 
Changes in equity 
 
Movement in equity reserve - (74,710) - (74,710) 
 
Revaluation of investment property (105,934) (105,934) - (105,934) 
 
Balance at 31 August 2019 36,141 841,889 - 841,889 
 
ECOVISTA PLC 
 
COMPANY STATEMENT OF CHANGES IN EQUITY 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
Called up 
 
share Retained Share Equity Total 
 
capital earnings premium reserve equity 
 
GBP GBP GBP GBP GBP 
 
Balance at 1 September 2017 173,190 (1,610,616) 2,683,045 74,710 1,320,329 
 
Loss for the year - (170,304) - - (170,304) 
 
Changes in equity 
 
Issue of share capital 8,570 - 235,642 - 244,212 
 
Balance at 31 August 2018 181,760 (1,780,920) 2,918,687 74,710 1,394,237 
 
Loss for the year - (272,099) - - (272,099) 
 
Changes in equity 
 
Movement in equity reserve - - - (74,710) (74,710) 
 
Balance at 31 August 2019 181,760 (2,053,019) 2,918,687 - 1,047,428 
 
ECOVISTA PLC 
 
CONSOLIDATED STATEMENT OF CASH FLOWS 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
31.8.19 31.8.18 
 
Notes GBP GBP 
 
Cash flows from operating activities 
 
Cash generated from operations 23 (266,085) 184,839 
 
Interest paid (73,633) - 
 
Net cash from operating activities (339,718) 184,839 
 
Cash flows from investing activities 
 
Purchase of tangible fixed assets (425) (617,925) 
 
Purchase of investment property (230,934) - 
 
Acquisition of subsidiary - (100) 
 
Interest received 1,556 - 
 
Net cash from investing activities (229,803) (618,025) 
 
Cash flows from financing activities 
 
Net proceeds from issue of equity - 244,212 
 
Loan received 800,000 - 
 
Proceeds from loan notes issued - 550,000 
 
Loan repayments (296,973) (100,000) 
 
Loan made to third party - (309,699) 
 
Net cash from financing activities 503,027 384,513 
 
Decrease in cash      (66,494)             (48,673) 
and cash 
equivalents 
 
Cash 
and    24      75,637                      124,310 
cash 
equiva 
lents 
at 
beginn 
ing of 
year 
 
Cash    24 9,143                      75,637 
and 
cash 
equival 
ents at 
end of 
year 
 
    ECOVISTA PLC GROUP 
 
COMPANY STATEMENT OF CASH FLOWS 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
31.8.19 31.8.18 
 
Notes GBP GBP 
 
Cash flows from operating activities 
 
Cash generated from operations 23 (95,125) (442,136) 
 
Interest paid (18,392) - 
 
Net cash from operating activities (113,517) (442,136) 
 
Cash flows from investing activities 
 
Purchase of subsidiary - (100) 
 
Interest received 1,556 - 
 
Net cash from investing activities 1,556 (100) 
 
Cash flows from financing activities 
 
Net proceeds from issue of equity - 244,212 
 
Proceeds from loan notes issued 50,000 550,000 
 
Loan repayments - (100,000) 
 
Loan made to third party - (302,256) 
 
Net cash from financing activities 50,000 391,956 
 
Decrease in cash      (61,961)             (50,280) 
and cash 
equivalents 
 
Cash 
and    24      63,364                      113,644 
cash 
equiva 
lents 
at 
beginn 
ing of 
year 
 
Cash    24 1,403                      63,364 
and 
cash 
equival 
ents at 
end of 
year 
 
ECOVISTA PLC 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
1. STATUTORY INFORMATION 
 
      Ecovista plc is a public company, registered in England and Wales. The 
   company's registered number and registered office address can be found on 
        page 1. It is a NEX-listed investment company. 
 
2. ACCOUNTING POLICIES 
 
Basis of preparation 
 
        These financial statements have been prepared in accordance with 
International Financial Reporting Standards (IFRS) and IFRIC interpretations 
    with those parts of Companies Act 2006 applicable to companies reporting 
    under IFRS. The financial statements have been prepared under historical 
  cost convention, except for the financial instruments that are measured at 
      the fair values at the end of the reporting period. Historical cost is 
generally based on the fair value of the consideration given in exchange for 
        goods and services. 
 
        This is the first year in which IRFS has been adopted; the financial 
      statements were previously prepared to comply with Financial Reporting 
   Standard 102 ("FRS 102"). No transitional adjustments were necessary as a 
        result of this change. 
 
Basis of consolidation 
 
  The consolidated financial statements incorporate the financial statements 
    of the company and entities controlled by the company (its subsidiaries) 
   made up to 31 August each year. Control is achieved where the Company has 
     the power to govern the financial and operating policies of an invested 
        entity so as to obtain benefits from its activities. The results of 
  subsidiaries acquired or disposed of during the period are included in the 
   consolidated statement of comprehensive income from the effective date of 
  acquisition or up to the effective date of disposal, as appropriate. Where 
 necessary, adjustments are made to the financial statements of subsidiaries 
       to bring their accounting policies into line with those used by other 
    members of the group. All intra-group transactions, balances, income and 
        expenses are eliminated on consolidation. 
 
Revenue recognition 
 
      Revenue is measured at the fair value of the consideration received or 
   receivable. Rental income is recognised on a straight-line basis over the 
        term of the relevant agreement. 
 
Property, plant and equipment 
 
  Depreciation is provided at 33% on the reducing balance method in order to 
       write off computer equipment over its estimated useful life. Freehold 
 properties are accounted for in accordance with the provisions of IAS 16 of 
  IFRS. They are valued annually by the director who relies on his knowledge 
        of local property prices, and from time to time by an independent 
professional valuer, on a fair value basis. Increases in the carrying amount 
        arising on revaluation of freehold property are credited to other 
    comprehensive income and shown in a revaluation reserve in shareholders' 
      equity. Decreases that offset previous increases of the same asset are 
   charged in other comprehensive income; all other decreases are charged to 
        income statements. 
 
Investment property 
 
Investment properties are accounted for in accordance with the provisions of 
        IAS 40. They are valued annually by the directors who rely on their 
 knowledge of local property prices, and from time to time by an independent 
professional valuer, on a fair value basis. Increases in the carrying amount 
        arising on revaluation of investment property are credited to other 
     comprehensive income and shown in a revaluation reserve in shareholders 
      equity. Decreases that offset previous increases of the same asset are 

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DJ EcoVista PLC: Audited Annual Results for the year -5-

   charged in other comprehensive income; all other decreases are charged to 
        income statements. 
 
Investments 
 
     Investments comprise of investments in unquoted equity instruments. The 
    investments are carried at fair value through profit or loss. Where fair 
 value cannot be measured reliably, the investments are carried at cost less 
        impairment. 
 
    ECOVISTA PLC 
 
    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
2. ACCOUNTING POLICIES - continued 
 
Impairment of assets 
 
At each reporting date assets are reviewed to determine whether there is any 
  indication that those assets have suffered an impairment loss. If there is 
an indication of possible impairment, the recoverable amount of any affected 
  asset is estimated and compared with its carrying amount. If the estimated 
        recoverable amount is lower, the carrying amount is reduced and an 
     impairment loss is recognised in the statement of profit or loss. If an 
  impairment loss subsequently reverses, the carrying amount of the asset is 
     increased to the revised estimate of its recoverable amount, but not in 
 excess of the amount that would have been determined had no impairment loss 
  been previously recognised. A reversal of an impairment loss is recognised 
        in the statement of profit or loss. 
 
Financial instruments 
 
    Financial assets and financial liabilities are recognised when the group 
 becomes a party to the contractual provisions of the instrument. On initial 
  recognition, financial assets are classified as either financial assets at 
fair value through income statement, held-to-maturity investments, loans and 
    receivables financial assets, or available-for-sale financial assets, as 
        appropriate. 
 
        The component parts of compound instruments issued by the group are 
classified separately as financial liabilities and equity in accordance with 
    the substance of the contractual arrangement. On initial recognition the 
 financial liability component is recorded at its fair value. At the date of 
      issue, in the case of a convertible bond denominated in the functional 
  currency of the issuer that may be converted into a fixed number of equity 
    shares, the fair value of the liability component is estimated using the 
   prevailing market interest rate for a similar non-convertible instrument. 
 The equity component is determined by deducting the amount of the liability 
 component from the affair value of the compound instrument as a whole. This 
    is recognised and included in equity and is not subsequently remeasured. 
 
Taxation 
 
The tax expense represents the sum of the tax currently payable and deferred 
        tax. Current taxes are based on the results shown in the financial 
 statements and are calculated according to local tax rules, using tax rates 
     enacted or substantially enacted by the statement of financial position 
      date. Deferred tax is the tax expected to be payable or recoverable on 
temporary 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. 
 
Employee benefit costs 
 
     The group operates a defined contribution pension scheme. Contributions 
payable to the group's pension scheme are charged to the income statement in 
        the period to which they relate. 
 
Foreign currencies 
 
Assets and liabilities in foreign currencies are translated into sterling at 
        the rates of exchange prevailing at the 
 
  balance sheet date. Transactions in foreign currencies are translated into 
        sterling at the rate of exchange 
 
  prevailing at the date of transaction. Exchange differences are taken into 
        account in arriving at the operating 
 
        result. 
 
Critical accounting judgements and key sources of estimation uncertainty 
 
  In the application of the group's accounting policies, which are described 
        above, the directors are required to make judgements, estimates and 
 assumptions which affect reported income, expenses, assets, liabilities and 
        disclosure of contingent assets and liabilities. The estimates and 
  associated assumptions are based on historical experience, expectations of 
future events and other factors that are believed to be reasonable under the 
        circumstances. Actual results in the future could differ from such 
      estimates. The estimates and underlying assumptions are reviewed on an 
      ongoing basis. Revisions to accounting estimates are recognised in the 
        period. 
 
        The following are the group's key sources of estimation uncertainty: 
 
    ECOVISTA PLC 
 
    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
Valuation of land and buildings 
 
    The group carries its land and buildings at fair value (see notes 10 and 
11), with changes in fair value recognised as other comprehensive income and 
       shown in a fair value reserve in shareholders' equity. The group uses 
        external professional valuers to determine the relevant amounts. The 
     valuations are inherently subjective as they are made using assumptions 
        applied by the valuers which may not prove to be accurate. 
 
Carrying value of investments 
 
        The group is required to make judgements about the carrying value of 
 investments in unquoted companies (see note 12) where fair values cannot be 
    readily established, and to evaluate the extent of any impairment. It is 
   important to recognise that the carrying value of such investments cannot 
    always be substantiated by reference to independent markets and, in many 
       cases, may not be capable of immediate realisation. Management make a 
        significant judgement in this regard, in that they value the group's 
investments at cost less previous impairment, because they consider there to 
     be a lack of other input or evidence to suggest an uplift in the value, 
      given the uncertainty surrounding the economy and the property market. 
 
Trade and other receivables 
 
  Trade and other receivables are non-derivative financial assets with fixed 
or determinable payments that are not quoted in an active market. Subsequent 
        to initial recognition, trade and other receivables and measured at 
    amortised cost less impairment losses for bad and doubtful debts, except 
       where the receivables are interest-free loans made to related parties 
  without any fixed repayment terms or where the effect of discounting would 
       be immaterial. In such cases, the receivables are stated at cost less 
        impairment losses for bad and doubtful debts. 
 
Cash and cash equivalents 
 
 Cash and cash equivalents comprises cash on hand, demand deposits and short 
 term investments which are readily convertible to known amounts of cash and 
        which are subject to an insignificant risk of change in value. 
 
Trade and other payables 
 
        Trade and other payables are initially recognised at fair value and 
        thereafter stated in amortised cost, except where the payables are 
     interest-free loans made by related parties without any fixed repayment 
  terms or the effect of discounting would be immaterial, in which case they 
        are stated at cost. 
 
New and revised IFRSs in issue but not yet effective 
 
   At the date of authorisation of these financial statements, the group has 
   not applied the following new and revised IFRSs that have been issued but 
        are not yet effective and not early adopted. 
 
IFRS 2       Amendments - classification and measurement of 
             share-based payments transactions 
IFRS 9       Financial instruments 
IFRS 15      Revenue from contracts with customers, and 
             related clarification 
IFRS 16      Leases 
IFRIC 22     Foreign currency transactions and advanced 
             consideration 
 
 The directors do not expect that the adoption of the standards listed above 
       will have a material impact on the financial statements of the group. 
 
3. TURNOVER 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Rental income from UK properties 17,400 17,400 
 
ECOVISTA PLC 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
4. EMPLOYEES AND DIRECTORS 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Directors' emoluments 45,500 37,500 
 
Wages and salaries 15,842 12,526 
 
Pension costs 243 55 
 
61,585 50,081 
 
The remuneration to the highest paid director was GBP18,000 (2018: GBP21,500). 
 
        The average number of employees during the year was as follows: 
 
31.8.19 31.8.18 
 
Staff 1 1 
 
Directors 3 3 
 
4 4 
 
5. NET FINANCE COSTS 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Finance income: 
 
Interest received 1,556 - 
 
1,556 - 
 
Finance costs: 
 
Other interest 24,236 65,240 
 
Interest payable 49,397 - 
 
73,633 65,240 
 
Net finance costs 72,077 65,240 
 
6. LOSS BEFORE INCOME TAX 
 
The loss before income tax is stated after charging/(crediting): 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Depreciation - owned assets 140 - 
 
Loss on disposal of fixed assets - 15,000 
 
Auditors' remuneration 29,400 12,000 
 
Foreign exchange differences (1,459) (27,877) 
 
ECOVISTA PLC 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
7. INCOME TAX 
 
Analysis of tax expense 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Deferred tax 54 - 
 
  Total    54                         - 
  tax 
  expense 
  in 
  consolid 
  ated 
  statemen 
  t of 
  profit 
  or loss 
 
Reconciliation of total tax charge/(credit) included in profit and loss 
 
The tax assessed for the year is lower than the standard rate of corporation 
        tax in the UK. The difference is explained below: 
 
31.8.19 31,8.18 
 
GBP GBP 
 
Loss before tax 368,349 238,454 
 
  Profit 
  multipli 69,986                     45,306 
  ed by 
  the 
  standard 
  rate of 
  corporat 
  ion tax 
  in the 

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DJ EcoVista PLC: Audited Annual Results for the year -6-

  UK of 
  19% 
  (2018: 
  19%) 
 
Effects of: 
 
Losses carried forward (69,986) (45,306) 
 
Total tax charge/(credit) - - 
 
8. PARENT COMPANY'S LOSS 
 
 As permitted by section 408 of the Companies Act 2006, the income statement 
        of the parent company is not presented as part of these financial 
   statements. The parent company's loss for the financial year was GBP272,099 
         (2018: GBP170,304). 
 
9. EARNINGS PER SHARE 
 
        Basic earnings per share are calculated by dividing the earnings 
     attributable to ordinary shareholders by the weighted average number of 
   ordinary shares outstanding during the period. Diluted earnings per share 
      are calculated using the weighted average number of shares adjusted to 
        assume the conversion of all dilutive potential ordinary shares. 
 
Earnings 
 
Earnings Number per share 
 
GBP of shares (pence) 
 
Basic earnings per share 
 
   Year (368,403)            5,447,815,699                -0.007 
  ended 
     31 
 August 
   2019 
 
   Year (238,454)            5,447,815,699                -0.004 
  ended 
     31 
 August 
   2018 
 
For the current year and the prior year, there is no difference between 
basic and diluted earnings per share. 
 
ECOVISTA PLC 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
10. PROPERTY, PLANT AND EQUIPMENT 
 
Group 
 
Freehold Computer 
 
property equipment Totals 
 
GBP GBP GBP 
 
COST 
 
At 1 September 2018 2,107,090 - 2,107,090 
 
Additions - 425 425 
 
Reclassification as investment property (1,575,000) - (1,575,000) 
 
At 31 August 2019 532,090 425 532,515 
 
DEPRECIATION 
 
 Charge -                140                140 
 for 
 year 
 
At 31 August 2019 - 140 140 
 
NET BOOK VALUE 
 
At 31 August 2019 532,090 285 532,375 
 
At 31 August 2018 2,107,090 - 2,107,090 
 
The freehold property held in the subsidiary 100 Rye Street Limited has been 
reclassified as investment property, as the group now intends to hold it for 
investment and to rent it out for the foreseeable future. The freehold 
property held in the subsidiary Start Hill Limited is a four-bedroom house 
in Bishop's Stortford. The parent company has no property, plant and 
equipment. 
 
11. INVESTMENT PROPERTY 
 
Group 
 
Total 
 
GBP 
 
FAIR VALUE 
 
Additions 230,934 
 
Revaluations (105,934) 
 
Reclassification from freehold property 1,575,000 
 
At 31 August 2019 1,700,000 
 
NET BOOK VALUE 
 
At 31 August 2019 1,700,000 
 
The investment property is held in the subsidiary 100 Rye Street Limited, 
and is a six-bedroom house in Bishop's Stortford. 
 
    ECOVISTA PLC 
 
    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
11. INVESTMENT PROPERTY - continued 
 
        Fair value at 31 August 2019 is represented by: 
 
GBP 
 
Cost 1,663,859 
 
Valuation in 2018 142,075 
 
Valuation in 2019 (105,934) 
 
1,700,000 
 
The parent company has no investment property. 
 
12. INVESTMENTS 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Investment in subsidiaries 281 281 
 
Unlisted equity investment 151,806 508,616 
 
  Total    152,807                    508,897 
  tax 
  expense 
  in 
  consolid 
  ated 
  statemen 
  t of 
  profit 
  or loss 
 
 The unlisted equity investment is a 13% stake in the ordinary share capital 
       of Cignella SRL, an unquoted Italian company whose principal place of 
  business is Del Renelli, Trequando, Italy 53020. The principal activity of 
        Cignella SRL is that of providing hotel and leisure activities. This 
  investment is stated at cost less impairment. The company has an option to 
   purchase all the remaining equity in Cignella SRL on 31 December 2020 for 
        &euro4,000,000. 
 
The group owns 100% of the ordinary share capital of 100 Rye Street Limited, 
   Ecovista UK Property Holdings Limited and Willside Limited and 80% of the 
      ordinary share capital of Start Hill Limited. All the subsidiaries are 
engaged in the same activity as the group, and all are registered in England 
    and Wales, with the same registered office as the parent company. At the 
        year end, the reserves of the subsidiaries were as follows: 
 
31.8.19 31.8.18 
 
GBP GBP 
 
100 Rye Street Limited (126,600) 72,893 
 
Ecovista UK Property Holdings Limited 100 100 
 
Willside Limited (48,928) (38,392) 
 
Start Hill Limited (29,830) (37,621) 
 
    ECOVISTA PLC 
 
    NOTES TO THE FINANCIAL STATEMENTS - continued 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
13. TRADE AND OTHER RECEIVABLES 
 
Group Company 
 
31.8.19 31.8.18 31.8.19 31.8.18 
 
GBP GBP GBP GBP 
 
        Current: 
 
Amounts owed by group undertakings - - 1,659,689 1,807,199 
 
VAT 1,347 558 - - 
 
Prepayments 7,190 4,078 6,657 4,078 
 
Other debtors 403,959 4,987 378,839 4,865 
 
412,496 9,623 2,045,185 1,816,142 
 
Amounts owed by group undertakings are unsecured and interest-free, and are 
repayable on demand. 
 
14. CASH AND CASH EQUIVALENTS 
 
Group Company 
 
31.8.19 31.8.18 31.8.19 31.8.18 
 
GBP GBP GBP GBP 
 
Bank accounts 9,143 75,637 1,403 63,364 
 
15. CALLED UP SHARE CAPITAL 
 
Allotted, issued and fully paid: 
 
Number: Class: Nominal 31.8.19 31.8.18 
 
value: GBP GBP 
 
5,447,815,699 Ordinary 0.001p 54,473 54,473 
 
128,572,167 Deferred 0.099p 127,287 127,287 
 
181,760 181,760 
 
Each ordinary share confers on its owner the right to vote and participate 
in dividends and on a winding-up. The deferred shares confer no right to 
vote or to participate in dividends, nor to participate in a winding-up 
until each ordinary share has provided a dividend of GBP100,000. 
 
16. RESERVES 
 
      The share premium reserve includes premiums received on issuing equity 
  shares, net of any associated transaction costs associated with the issue. 
 
 The fair value reserve represents the cumulative effect of the revaluations 
      of freehold properties, which are revalued to their fair value at each 
        reporting date. 
 
      The equity reserve represents the equity component of convertible loan 
        notes. 
 
Retained earnings include the retained profits and losses of the current and 
        prior periods. 
 
ECOVISTA PLC 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
17. TRADE AND OTHER PAYABLES 
 
Group Company 
 
31.8.19 31.8.18 31.8.19 31.8.18 
 
GBP GBP GBP GBP 
 
        Current: 
 
Trade payables 31,729 28,516 28,228 28,516 
 
Amounts owed to group undertakings - - - 100 
 
  Social security and other taxes  410 291 410 291 
 
Loan (see note 18) 800,000 297,437 - - 
 
Pensions payable 66 24 66 24 
 
Accrued expenses 31,208 21,475 22,543 17,621 
 
Directors' current accounts 464 464 - - 
 
Other payables - 16,924 - 2,755 
 
863,877 365,131 51,247 49,307 
 
Non-current: 
 
Loans 1,100,000 944,862 1,100,000 944,862 
 
Aggregate amounts 1,963,877 1,309,993 1,151,247 994,169 
 
     Non-current payables include GBP550,000 convertible loan notes which were 
issued to an unrelated party on 31 August 2018. The notes are convertible at 
  the lender's option into new ordinary shares at 0.05p per share. The final 
 conversion date is 31 August 2020 and the notes carry a 7% interest coupon. 
    The net proceeds from the issue of the loan notes were split between the 
  liability element and the equity component, representing the fair value of 
the embedded option to convert the liability into equity of the company. The 
    loan note equity reserve thus created was GBP74,710. However, this assumed 
 that the share price of Ecovista plc would exceed 0.05p, which has not been 
 the case since the convertible loan notes were issued. It is now considered 
  that there is no realistic prospect of the lender exercising its option to 
  convert the loan notes into equity, and the reserve has now been reversed. 
 
18. SECURITY FOR LOAN 
 
The current loan in note 17 is secured on a fixed charge on the investment 
property of 100 Rye Street Limited. 
 
ECOVISTA PLC 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
19. FINANCIAL INSTRUMENTS 
 
   The main risks arising from the group and company's financial instruments 
  are detailed in the strategic report on page 3. The carrying values of the 
      group and company's financial assets and liabilities are summarised by 
category below. The fair value of the group and company's recorded financial 
        assets does not materially differ from their book values. 
 
        Group 
 
              2019                            2018 
                     Fair value                      Fair value 
 Held at              through    Held at              through 
 amortised           profit and  amortised           profit and 
 cost                   loss     cost                   loss 
    GBP                   GBP           GBP                   GBP 
 
Financial assets 
 
Fixed asset  -          151,806      -             508,616 
investments 
Prepayments  7,190      -            4,078         - 
Cash and     9,143      -            75,637        - 
cash 
equivalents 
 
16,133 151,806 79,715 508,616 
 
Financial liabilities 
 
Convertible  -          1,100,000    -             944,862 
loan notes 
Trade        31,729     -            28,516        - 
payables 
Loans        800,000    -            297,437       - 
payable 
Accruals     32,148     -            39,178        - 
and other 
payables 
 
863,877 1,100,000 365,131 944,862 
 
Company 
 
              2019                            2018 
                     Fair value                      Fair value 
 Held at              through    Held at              through 
 amortised           profit and  amortised           profit and 
 cost                   loss     cost                   loss 
    GBP                   GBP           GBP                   GBP 
 
Financial assets 
 
Fixed asset  -          151,806      -             508,616 
investments 
Other        378,839    -            -             - 
debtors 
Prepayments  6,657      -            4,078         - 
Cash and     1,403      -            63,364        - 
cash 

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DJ EcoVista PLC: Audited Annual Results for the year -7-

equivalents 
Loans and    1,659,689  -            1,807,199     - 
receivables 
 
2,046,588 151,806 1,874,641 508,616 
 
    ECOVISTA PLC 
 
    NOTES TO THE FINANCIAL STATEMENTS - continued 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
20. FINANCIAL INSTRUMENTS - continued 
 
Financial liabilities 
 
Convertible  -          1,070,499    -             944,864 
loan notes 
Trade        28,228     -            28,516        - 
payables 
Accruals     29,919     -            20,791        - 
and other 
payables 
 
58,147 1,070,499 49,307 944,864 
 
21. FINANCIAL RISK MANAGEMENT 
 
     The group is exposed to a variety of financial risks resulting from its 
        operating and investing activities. The group's risk management is 
     coordinated by the board of directors, and focuses on actively securing 
     short to medium term cash flows by minimising the exposure to financial 
        markets. 
 
        Market risk 
 
      Market risk is the risk that changes in market prices, such as foreign 
     exchange rates and interest rates will affect the group's income or the 
  value of its holdings of financial instruments. At the balance sheet date, 
   the group had no exposure to interest rate risk because borrowings are at 
 fixed rates. There is no foreign exchange risk because sales, purchases and 
        borrowings are all denominated in sterling. 
 
        Liquidity risk 
 
 Trade payables of GBP31,729 (2018: GBP28,516) were due on demand. Borrowings of 
    GBP1,900,000 (2018: GBP1,242,299) include convertible loan notes of GBP600,000 
        falling due on 2 December 2020. 
 
        Credit risk 
 
        Credit risk is not considered material. 
 
22. RELATED PARTY DISCLOSURES 
 
      During the year GBP11,500 (2018: GBP41,885) was paid to LCH Consultants, a 
        company owned by the director Louise Stokely. 
 
   During the year GBP16,500 (2018: GBP13,938) was paid to Simon North's service 
 company, Lemskah Limited. Mr North is a director of 100 Rye Street Limited, 
      Start Hill Limited, Willside Limited and Ecovista UK Property Holdings 
        Limited, and he is involved in the management of Ecovista plc. 
 
   At the balance sheet date, GBP70,000 was receivable from (2018: GBP79,900 was 
payable to) TS&D Solutions Limited, the directors of which are related to Mr 
        North. 
 
  During the year, GBP7,257 (2018: GBP4,254) was paid to Bushwood Accountants, a 
      firm in which the director Sarah Horsnell is an employee. Also, GBP8,000 
(2018: GBPnil) was charged by Mrs Horsnell's service company, SMH Professional 
        Services Limited, for professional administrative fees. 
 
During the year GBP8,000 (2018: GBPnil) was paid to the director David Barnett's 
        service company, David Barnett Consultancy Limited, for professional 
        administrative fees. 
 
       All transactions with related parties were conducted at arm's length. 
     Transactions between the parent company and its subsidiaries, which are 
 related parties, have been eliminated on consolidation and are not required 
        to be disclosed. 
 
ECOVISTA PLC 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
FOR THE YEAR ENDED 31 AUGUST 2019 
 
23. RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED 
    FROM OPERATIONS 
 
Group 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Loss before income tax (368,349) (238,454) 
 
Depreciation charges 140 - 
 
Finance costs 73,633 65,240 
 
Finance income (1,556) - 
 
Other movements - (20) 
 
(296,132) (173,234) 
 
(Increase)/decrease in trade and other receivables (46,065) 65,469 
 
Increase in trade and other payables 76,112 292,604 
 
  Cash     (266,085)                  184,839 
  generate 
  d from 
  operatio 
  ns 
 
Company 
 
31.8.19 31.8.18 
 
GBP GBP 
 
Loss before income tax (272,099) (170,308) 
 
Finance costs 14,075 65,240 
 
Finance income (1,556) - 
 
Other movements - (20) 
 
(259,580) (105,088) 
 
Decrease/(increase) in trade and other receivables 93,796 (334,056) 
 
Increase/(decrease) in trade and other payables 70,659 (2,992) 
 
  Cash     (95,125)                   (442,136) 
  generate 
  d from 
  operatio 
  ns 
 
24. CASH AND CASH EQUIVALENTS 
 
The amounts disclosed on the statements of cash flows in respect of cash and 
    cash equivalents are in respect of these statement of financial position 
        amounts: 
 
Group Company 
 
Year ended 31 August 2019 
 
31.8.19 1.9.18 31.8.19 1.9.18 
 
GBP GBP GBP GBP 
 
Cash and cash equivalents 9,143 75,637 1,403 63,364 
 
Year ended 31 August 2018 
 
31.8.18 1.9.17 31.8.18 1.9.17 
 
GBP GBP GBP GBP 
 
Cash and cash equivalents 75,637 124,310 63,364 113,644 
 
    ECOVISTA PLC 
 
    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued 
 
    FOR THE YEAR ENDED 31 AUGUST 2019 
 
25. GOING CONCERN 
 
   The financial statements have been prepared on a going concern basis. The 
   group's assets are generating minimal revenues. An operating loss and net 
        cash outflow have been reported, and are expected again in the year 
     subsequent to the date of the financial statements. The group will need 
  either to secure a successful sale of the property that they are intending 
        to market or raise debt or equity on the open market to fund future 
        operations and settle loans that fall due. 
 
    Based on the board's budget and cash flow forecast, the directors have a 
   reasonable expectation that the group has access to adequate resources to 
 continue in operational existence for the foreseeable future either through 
     property sale or debt/ equity funding. Thus, they continue to adopt the 
        going concern basis of accounting in these financial statements. 
 
   Should the group be unable to trade as a going concern, adjustments would 
   have to be made to reduce assets to their recoverable amounts, to provide 
for further liabilities which might arise and to classify non-current assets 
  as current. The financial statements have been prepared on a going concern 
 basis and do not include the adjustments that would result if the group was 
        unable to continue as a going concern. 
 
 The auditors make reference to going concern by way of material uncertainty 
        in their audit report. 
 
26. SUBSEQUENT EVENTS 
 
   On 2 September 2019, Ecovista plc sold its interest in the subsidiary 100 
         Rye Street Limited to its director Simon North for GBP1. 
 
ISIN:          GB00B0W5NJ22 
Category Code: FR 
TIDM:          EVTP 
LEI Code:      2138009TFBHJ8KVP2S10 
Sequence No.:  50645 
EQS News ID:   990575 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

March 05, 2020 10:08 ET (15:08 GMT)