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DJ Lombard Capital PLC Final Results

 
TIDMLCAP 
 
Lombard Capital PLC 
 
                Final results for the year ended 31 March 2018 
 
Chairman's Statement 
 
Dear Shareholders 
 
During the year under review your Board has been working towards producing 
secure bond investments where the instrument is fully secured by re-insurance 
or by tangible assets. The work continues to progress and your Board expects to 
be able to make an announcement in the second or third quarter of the new 
financial year. 
 
Post year end your directors have re-opened the 7.5% 2020 Unsecured Loan Note 
and to the date of these accounts, a total sum of GBP320,000 has been received 
and further subscriptions are anticipated before the closing date of 30 
September 2018. 
 
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 
 
22 August 2018 
 
The directors of Lombard Capital Plc accept responsibility for this 
announcement. 
 
 
For further information please contact: 
 
Brent Fitzpatrick 
Tel:  07718 883813 
 
NEX 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 2018 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 22 August 2018. The 
audit report included the following modification:- 
 
"Material uncertainty related to going concern 
 
We draw attention to note 2 in the financial statements, which explains that 
the company is dependant upon ongoing fundraising  and forecast revenue streams 
to commercialise and develop its core businesses.  These events or conditions 
along with other matters as set forth in note 2, indicate that a material 
uncertainty exists that may cast doubt on the Company's ability to continue as 
a going concern.  Our opinion is not modified in respect of this matter." 
 
The Annual Report of Lombard Capital Plc for year ended 31 March 2018 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 2018 
 
                                                                     2018           2017 
 
                                                                      GBP            GBP 
 
                                                     Notes 
 
Continuing operations: 
 
 
Operating expenses                                              (340,268)      (190,440) 
 
Impairment of investments                                        (44,390)              - 
 
Operating loss and loss before taxation                         (384,658)      (190,440) 
 
Taxation expense                                                        -              - 
 
Loss for the year, attributable to owners of the                (384,658)      (190,440) 
Company 
 
Loss per share attributable to owners of the                        pence          pence 
Company during the year 
 
Basic and diluted 
 
Total and continuing operations                          3         (11.1)          (7.1) 
 
 
. 
 
Statement of Financial Position 
as at 31 March 2018 
 
                                                                  2018          2017 
 
                                                   Notes           GBP           GBP 
 
Non-current assets 
 
Available for sale investments                                 112,500       112,500 
 
Current assets 
 
Trade and other receivables                                          -         7,800 
 
Cash and cash equivalents                                        2,154           622 
 
Total current assets                                             2,154         8,422 
 
Total assets                                                   114,654       120,922 
 
Equity 
 
Share capital                                                  194,116       193,223 
 
Share premium                                                  954,574       866,103 
 
Share option reserve                                            80,300        13,160 
 
Investment revaluation reserve                                 100,184       100,184 
 
Retained earnings                                          (1,563,469)   (1,178,811) 
 
Equity attributable to owners of the Company                 (234,295)       (6,141) 
and total equity 
 
Current liabilities 
 
Trade and other payables                                       348,949       127,063 
 
Total equity and liabilities                                 (114,654)       120,922 
 
 
Statement of Cashflows 
for the year ended 31 March 2018 
 
                                                                 2018         2017 
                                                Notes             GBP          GBP 
 
Operating activities 
 
Loss before tax                                             (384,658)    (190,440) 
 
Share based payment                                            67,140            - 
 
(Increase)/decrease in trade and other                          7,800            - 
receivables 
 
Increase/(decrease) in trade and other                        221,886       78,597 
payables 
 
Net cash flow from operating activities                      (87,832)    (111,843) 
 
Investing activities 
 
Proceeds from sale of available-for-sale                            -       23,310 
assets 
 
Net cash flow from investing activities                             -       23,310 
 
Financing activities 
 
Proceeds from issue of shares                                  89,364       86,487 
 
Net cash flow from financing activities                        89,364       86,487 
 
Net increase / (decrease) in cash and cash                      1,532      (2,046) 
equivalents 
 
Cash and cash equivalents at start of year                        622        2,668 
 
Cash and cash equivalents at the end of the                     2,154          622 
year/period 
 
Cash and cash equivalents comprise: 
 
Cash and cash in bank                                           2,154          622 
 
Cash and cash equivalents at end of year/                       2,154          622 
period 
 
 
 
Notes to the Financial Statements 
for the year ended 31 March 2018 
 
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. 
 
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. 
 
2 Accounting policies 
 
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 GBP384,658 and at the year-end had 
current liabilities of GBP348,949.  The cash balance at the year-end was GBP2,154, 
post year end the Company has generated GBP320,000 by the issue of loan notes, so 
at the time of signing of these accounts there are sufficient 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 revenue streams 
from bond issuances, the eradication of debt and the inflow of funds from the 
conversion of warrants, the Company will secure adequate funds for the working 
capital requirements of 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 
 
During the financial year, the Company has adopted the following new and 
amended IFRS and IFRIC interpretations that are mandatory for current financial 
year: 
 
Amendments to IAS 7      Disclosure Initiative 
 
Amendments to IAS 12     Recognition of Deferred Tax Assets for Unrealised 
                         Losses 
 
Annual Improvements      Amendments to IFRS 12 Disclosure of Interest in 
to                       Other Entities 
IFRS standard 2014- 2016 
 
The impact of adopting the above amendments had no material impact on the 
financial statements of the Company. 
 
The following standards, amendments and interpretations applicable to the 
Company are in issue but are not yet effective and have not been early adopted 

(MORE TO FOLLOW) Dow Jones Newswires

August 22, 2018 12:43 ET (16:43 GMT)

DJ Lombard Capital PLC Final Results -2-

in these financial statements. They may result in consequential changes to the 
accounting policies and other note disclosures. We do not expect the impact of 
such changes on the financial statements to be material. These are outlined in 
the table below: 
 
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 
 
IFRS 14                                                   Regulatory deferral 
accounts 
 
IFRS 15                                                   Revenue from 
Contracts with Customers 
 
IFRS 16                                                   Leases 
 
IFRS 17                                                   Insurance Contracts 
 
IAS 1 (amended)                                    Presentation of Items of 
Other Comprehensive Income 
 
IAS 16 & 41 (amended)                          Property, Plant and Equipment 
 
IAS 19                                                     Employee benefits 
 
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 15. 
 
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 developing secure 
bond investment. 
 
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 
 
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. 
 
                                                        2018        2017 
                                                         GBP         GBP 
 
Earnings 
 
Loss for the purposes of basic and fully           (384,658)   (190,440) 
diluted loss per share 
 
Number of shares 
 
Weighted average number of shares for 
calculating basic and fully diluted                3,455,865   2,682,971 
earnings per share 
 
                                                        2018        2017 
 
                                                       Pence       pence 
 
Earnings per share 
 
Basic and fully diluted loss per share                (11.1)       (7.1) 
 
In 2017 the Company issued up to GBP100,000 warrants, during the year the Company 
received notice from the holders of 75,000 warrants to convert them into 75,000 
ordinary shares for a consideration of GBP7,500. 
 
 
 
END 
 

(END) Dow Jones Newswires

August 22, 2018 12:43 ET (16:43 GMT)