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DJ Lombard Capital PLC Annual Financial Report

 
TIDMLCAP 
 
Lombard Capital PLC 
 
                Final results for the year ended 31 March 2019 
 
Chairman's Statement 
 
Dear Shareholders 
 
During the year under review your Board has continued working towards producing 
secure bond investments where the instrument will be fully secured by tangible 
assets. Up to the year end GBP750,000 Nominal of 4% Bonds 2022 have been placed. 
 
Since the balance sheet date, a further GBP220,000 Nominal of 4% Bonds 2022 have 
been placed and your Board continues to work towards raising further funds in 
order to complete asset purchases. Your Board expects to be able to make an 
announcement in the second or third quarter of the new financial year. 
 
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 
30 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 2019 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 a qualified report on 30 August 2019. The 
audit report included the following modification: - 
 
"Qualified Opinion 
 
We have audited the financial statements of Lombard Capital Plc (the 'Group') 
for the year ended 31 March 2019 which comprise the statement of income and 
other comprehensive income, the statement of financial position, the statement 
of cash flows, the statement of changes in equity and notes to the financial 
statements, including a summary of significant accounting policies. The 
financial reporting framework that has been applied in the preparation of the 
financial statements is applicable law and International Financial Reporting 
Standards (IFRSs) as adopted by the European Union. 
 
In our opinion, except for the possible effects of the matter described in the 
Basis for Qualified Opinion section of our report: 
 
  * the financial statements give a true and fair view of the state of the 
    Group's affairs as at 31 March 2019 and of the Group's loss for the year 
    then ended; 
  * the financial statements have been properly prepared in accordance with 
    IFRSs as adopted by the European Union; and 
  * the financial statements have been prepared in accordance with the 
    requirements of the Companies Act 2006. 
 
Basis for qualified opinion 
 
The Group's investments at amortised cost represent loans advanced during the 
year and are carried at GBP700,700 on the consolidated statement of financial 
position as at 31 March 2019, we were unable to obtain sufficient appropriate 
audit evidence about these carrying amounts or whether any impairments were 
required. Consequently, we were unable to determine whether any adjustments to 
these amounts were necessary. 
 
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 Auditor's 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 as applied 
to listed entities, 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 related to going concern 
 
We draw attention to note 2 in the financial statements, which explains that 
the group is dependent upon ongoing fundraising and forecast revenue streams to 
commercialise and develop its core businesses. In addition, the group has bonds 
due to be paid in 31 March 2020 as explained in Note 11.  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 Group's ability to 
continue as a going concern." 
 
The Annual Report of Lombard Capital Plc for year ended 31 March 2019 is 
available upon request from the Company's registered office at 19 Goldington 
Road, Bedford, England, MK40 3JY. 
 
Consolidated Income Statement 
 
for the year ended 31 March 2019 
 
                                                         2019           2018 
 
                                                          GBP            GBP 
 
Continuing operations: 
 
 
Operating expenses                                  (292,337)      (340,268) 
 
Share based payments                                        -       (44,390) 
 
Operating loss                                      (292,337)      (384,658) 
 
Finance Charges                                      (29,469)              - 
 
Loss before taxation                                (321,806)      (384,658) 
 
Taxation expense                                            -              - 
 
Loss for the year, attributable to owners of        (321,806)      (384,658) 
the Group 
 
Loss per share attributable to owners of the            Pence          pence 
Group during the year 
 
Basic and diluted 
 
Total and continuing operations                         (9.3)         (11.1) 
 
 
Consolidated Statement of Financial Position 
 
as at 31 March 2019 
 
                                                          2019        2018 
 
                                                           GBP         GBP 
 
Non-current assets 
 
Financial assets at fair value through                 131,250     112,500 
other comprehensive income 
 
Financial Assets at amortised cost                     700,700           - 
 
Total non-current assets                               831,950     112,500 
 
Current assets 
 
Trade and other receivables                             41,296           - 
 
Cash and cash equivalents                               12,059       2,154 
 
Total current assets                                    53,355       2,154 
 
Total assets                                           885,305     114,654 
 
Equity 
 
Share capital                                          194,116     194,116 
 
Share premium                                          954,574     954,574 
 
Share option reserve                                    80,300      80,300 
 
Investment revaluation reserve                         118,934     100,184 
 
Retained earnings                                  (1,885,275) (1,563,469) 
 
Equity attributable to owners of the                 (537,351)   (234,295) 
Group and total equity 
 
Current liabilities 
 
Trade and other payables                               672,656     348,949 
 
Loans and other borrowings                             750,000           - 
 
Total equity and liabilities                           885,305     114,654 
 
. 
 
Consolidated Statement of Cashflows 
 
for the year ended 31 March 2019 
 
                                                        2019        2018 
                                                         GBP         GBP 
 
Operating activities 
 
Loss before tax                                    (321,806)   (384,658) 
 
Adjustment for: Expenses and retention               120,000           - 
related to bond 
 
Share based payment                                        -      67,140 
(Increase)/decrease in trade and other              (41,296)       7,800 
receivables 
 
Increase/(decrease) in trade and other               323,707     221,886 
payables 
 
Net cash flow from operating activities               80,605    (87,832) 
 
Investing activities 
 
Loan advanced                                      (700,700)           - 
 
Net cash flow from investing activities            (700,700)           - 
 
Financing activities 
 
Proceeds from issue of shares                              -      89,364 
 
Cash received from the Issuance of                   630,000 
bonds 
 
Net cash flow from financing activities              630,000      89,364 
 
Net increase / (decrease) in cash and                  9,905       1,532 
cash equivalents 
 
Cash and cash equivalents at start of                  2,154         622 
year 
 
Cash and cash equivalents at the end of               12,059       2,154 
the year/period 
 
Cash and cash equivalents comprise: 
 
Cash and cash in bank                                 12,059       2,154 
 
Cash and cash equivalents at end of                   12,059       2,154 
year/period 
 
 
Notes to the Financial Statements 
 
for the year ended 31 March 2019 
 
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 Group 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 

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DJ Lombard Capital PLC Annual Financial Report -2-

exercise its judgement in the process of applying the Group'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 Group made a loss of GBP321,806 and at the year-end had 
net current liabilities of GBP1,369,301.  The cash balance at the year-end was GBP 
12,059. 
 
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 Group will secure adequate funds for the working 
capital requirements of the Group 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 
Group will be a going concern for the next 12 months. 
 
Changes in accounting policy 
 
During the financial year, the Group 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 Group. 
 
The following standards, amendments and interpretations applicable to the Group 
are in issue but are not yet effective and have not been early adopted 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 
 
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. 
 
IFRS 9 - Financial Instruments IFRS 9 replaced the classification and 
measurement models for financial instruments contained in IAS 39 Financial 
Instruments: Recognition and Measurement and is effective for accounting 
periods beginning on or after 1 January 2018. 
 
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 Group. 
 
Key estimates and assumptions 
 
The Group 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 'Financial Assets and Liabilitiess' 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 Group'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 Group's activities from which 
it may earn revenues and incur expenses, whose operating results are regularly 
reviewed by the Group'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 Group's investment activities as a while, the 
directors have identified a single operating segment, that of developing secure 
bond investment. 
 
Financial assets and liabilities 
 
i. Recognition and initial 
measurement 
 
The Group initially recognises loans and advances, trade and other receivables/ 
payables, and borrowings plus or minus transactions costs when and only when 
the Group becomes party to the contractual provisions of the instruments. 
 
Financial assets at amortised cost 
 
The Group's financial assets at amortised cost comprise trade and other 
receivables. These represent debt instruments with fixed or determinable 
payments that represent principal or interest and where the intention is to 
hold to collect these contractual cash flows. 
 
They are initially recognised at fair value, included in current and 
non-current assets, depending on the nature of the transaction, and are 
subsequently measured at amortised cost using the effective interest method 
less any provision for impairment 
 
Financial assets at fair value through other comprehensive income 
 
 i. Classification of financial assets at fair value through other 
    comprehensive income 
 
Financial assets at fair value through other comprehensive income (FVOCI) 
comprise: 
 
Equity securities which are not held for trading, and which the group has 
irrevocably elected at initial recognition to recognise in this category. These 
are strategic investments and the group considers this classification to be 
more relevant. 
 
Debt securities where the contractual cash flows are solely principal and 
interest and the objective of the group's business model is achieved both by 
collecting contractual cash flows and selling financial assets. 
 
       ii. Equity investments at fair value through other comprehensive income 
 
Financial liabilities at amortised cost 
 
Financial liabilities at amortised cost comprise trade and other payables. They 
are classified as current and non-current liabilities depending on the nature 

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DJ Lombard Capital PLC Annual Financial Report -3-

of the transaction, are subsequently measured at amortised cost using the 
effective interest method. 
 
Financial assets 
 
The Group derecognises a financial asset when the contractual rights to the 
cash flows from the financial asset expire, or when it transfers the rights to 
receive the contractual cash flows in a transaction in which substantially all 
of the risks and rewards of ownership of the financial asset are transferred or 
in which the Group neither transfers nor retains substantially all of the risks 
and rewards of ownership and it does not retain control of the financial asset. 
 
On derecognition of a financial asset, the difference between the carrying 
amount of the asset (or the carrying amount allocated to the portion of the 
asset derecognised) and the sum of (i) the consideration received (including 
any new asset obtained less any new liability assumed) and (ii) any cumulative 
gain or loss that had been recognised in OCI is recognised in profit or loss. 
 
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 Group after deducting all of its liabilities.  Equity instruments 
issued by the Group 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 Group's balance sheet when the 
Group 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 Group's 
financial liabilities comprise trade and other payables. 
 
The Group derecognises a financial liability when its contractual obligations 
are discharged, cancelled or expire. 
 
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 Group by the weighted average number of ordinary 
shares in issue during the year. 
 
                                                        2019        2018 
                                                         GBP         GBP 
 
Earnings 
 
Loss for the purposes of basic and fully           (321,806)   (384,658) 
diluted loss per share 
 
Number of shares 
 
Weighted average number of shares for 
calculating basic and fully diluted                3,455,865   3,455,865 
earnings per share 
 
                                                        2019        2018 
 
                                                       Pence       Pence 
 
Earnings per share 
 
Basic and fully diluted loss per share                 (9.3)      (11.1) 
 
In 2017 the Group issued up to GBP100,000 warrants, during 2018 the Group 
received notice from the holders of 75,000 warrants to convert them into 75,000 
ordinary shares for a consideration of GBP7,500. 
 
 
 
END 
 

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