30th November 2017
Welney Plc
("Welney" or the "Company")
Audited Annual Results for the year ended 30 June 2017
Welney Plc Plc (NEX: WENP), are delighted to report its audited annual results for the twelve months ended 30 June 2017.
Chairman's statement
The Board is pleased to present the results for Welney plc for the year ended 30 June 2017.
During the year I have looked to keep the company's operating costs to a minimum whilst I continue to review several different proposals to take the Company forward, which at this stage none of which have been suitable. There are still a couple of proposals being considered and I have been involved in a number of discussions in enabling the Company to raise additional funding, all of which continue to be ongoing.
Separately the board are currently in discussions with several other parties both for investment into and out of the company.
The Company's investment in GACR the Nasdaq listed Company continues to perform poorly and it continues to be very illiquid.
The Company continues to investigate proposals for our subsidiary company Metro Environmental Ltd and will pursue this strategy once further funding is forthcoming.
Semsa International FZC ("Semsa"), the loan note holders, continues to support the Company by way of the loan note within the financial statements. The directors are now pleased to report that the loan note holders "Semsa" have agreed to not call in the loans outstanding for at least another 12 months. In addition, the company has confirmation of further support in relation to the future ongoing costs of the company from its shareholder's.
I hope to be able to report further developments to shareholders at the AGM, in the meantime the directors will keep costs to a minimum.
Performance Overview
The financial year to 30 June 2017 has continued to be challenging with the board continuing to review the ability to raise additional investment and as a consequence this year continues to be hampered by cash constraints.
Financial Results
The Company's loss for the year from continuing and total operations was £75,649 (2016: £75,588).
The directors do not recommend the payment of a dividend (2016:nil).
Significant Accounting Policies
Going concern
The Group meets its day to day financing through its cash reserves, equity or debt financing in the form of shareholders' loans and new share issues. As at 30 June 2017 the Company has net current liabilities of £24,515, a deficit in shareholders funds of £196,674 and no cash at bank.
Since the year end a further £11,000 has been received via loans to support the ongoing costs of the company.
The directors have prepared cash flow forecasts for the period to 30 June 2018 which assume no unnecessary costs or expenditure. On the basis of these forecasts, the fact that the loan note holders have agreed in writing to not call in the loans for at least the next 12 months from the date of this report, and that the directors have agreed not to take any salary or fees until such time as there is sufficient cash reserves in the business, the Company is expected to continue to operate within its available financial facilities for at least the next 12 months.
The going concern basis is dependent upon the Company meeting its forecasts for 2017/18. These forecasts show that further finance will need to be raised for the Company to continue, which may not be forthcoming.
Whilst the directors remain confident that the Company will continue as a going concern, this is dependent on their ability to secure the necessary funding to take the Company forward and there can be no certainty in this respect.
Nevertheless, after making due and careful enquires and considering all uncertainties, the Directors believe the Company will continue in operational existence for the foreseeable future. For this reason the Directors continue to adopt the going concern basis in preparing the annual report and financial statements. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
Please review the Company's annual report for full details.
Darren Edmonston
Chairman
Welney Plc
30 November 2017
The directors of Welney Plc accept responsibility for this announcement.
COMPANY CONTACT DETAILS:
Darren Edmonston
Tel: + 44 1279 635511
NEX CORPORATE ADVISER:
Alexander David Securities Limited
David Scott - Corporate Finance
James Dewhurst - Institutional Sales
Telephone: +44 (0) 20 7448 9820
http://www.ad-securities.com
49 Queen Victoria Street, London EC4N 4SA
WELNEY PLC
STATEMENT OF PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2017
| 2017 | 2016 | ||||||||||||||||
| £ | £ | ||||||||||||||||
| Administrative expenses | (66,339) | (65,729) | |||||||||||||||
| Operating loss | (66,339) | (65,729) | |||||||||||||||
| Interest payable and similar charges | (9,310) | (9,859) | |||||||||||||||
| Loss on ordinary activities before taxation | (75,649) | (75,588) | |||||||||||||||
| Tax on loss on ordinary activities | - | - | |||||||||||||||
| Loss for the year | (75,649) | (75,588) | |||||||||||||||
| Basic and diluted loss per share | (0.005)p | (0.005)p | |||||||||||||||
WELNEY PLC
STATEMENT OF BALANCE SHEET
FOR THE YEAR ENDED 30 JUNE 2017
| 2017 | 2016 | |||||||||||||||||||||
| £ | £ | £ | £ | |||||||||||||||||||
| Fixed assets | ||||||||||||||||||||||
| Investments | 1,567 | 1,567 | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||||
| Debtors | 14,848 | 15,094 | ||||||||||||||||||||
| Cash at bank and in hand | - | 52 | ||||||||||||||||||||
| 14,848 | 15,146 | |||||||||||||||||||||
| Creditors: amounts falling due within one year | (39,363) | (37,738) | ||||||||||||||||||||
| Net current liabilities lliabilities/(assets) | (24,515) | (22,592) | ||||||||||||||||||||
| Total assets less current liabilities | (22,948) | (21,025) | ||||||||||||||||||||
| Creditors: amounts falling due after more than one year | (173,726) | (100,000) | ||||||||||||||||||||
| (196,674) | (121,025) | |||||||||||||||||||||
| Capital and reserves | ||||||||||||||||||||||
| Called up share capital | 1,545,511 | 1,545,511 | ||||||||||||||||||||
| Share premium account | 1,562,336 | 1,562,336 | ||||||||||||||||||||
| Loan note holders reserve | 10,714 | 10,714 | ||||||||||||||||||||
| Share option reserve | - | 132,240 | ||||||||||||||||||||
| Profit and loss account | (3,315,235) | (3,371,826) | ||||||||||||||||||||
| Shareholders' funds | (196,674) | (121,025) | ||||||||||||||||||||
WELNEY PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
| Share capital | 2017 | 2016 | ||||||
| £ | £ | |||||||
| Allotted, called up and fully paid | ||||||||
| 1,545,511,000 Ordinary shares of 0.1p each | 1,545,511 | 1,545,511 | ||||||
| Statement of movements on reserves | ||||||||||
| Share premium account | Other reserves (see below) | Profit and loss account | ||||||||
| £ | £ | £ | ||||||||
| Balance at 1 July 2016 | 1,562,336 | 142,954 | (3,371,826) | |||||||
| Loss for the year | - | - | (75,649) | |||||||
| Reclassification of share option reserve to | 132,240 | |||||||||
| to the retained earnings | ||||||||||
| Balance at 30 June 2017 | 1,562,336 | 142,954 | (3,315,235) | |||||||
WELNEY PLC
STATEMENT OF CASH FLOW
FOR THE YEAR ENDED 30 JUNE 2017
| 2017 | 2016 | |||||||||||||
| £ | £ | £ | £ | |||||||||||
| Cash flows from operating activities | (18,952) | (2,980) | ||||||||||||
| Financial activities | ||||||||||||||
| Loans received from other | ||||||||||||||
| related parties relatedarties | 18,900 | - | | |||||||||||
| Net cash generated from financing activities | ||||||||||||||
| 18,900 - | ||||||||||||||
| Net decrease in cash and cash equivalents | (52) | (2,980) | ||||||||||||
| Cash and cash equivalents at beginning ofo | 52 | 3,032 | ||||||||||||
| - | 52 | |||||||||||||
| Cash and cash equivalents at end of year | ||||||||||||||
Welney Plc