29 September 2017
GB0033877555
BWA GROUP PLC
("BWA" or the "Company")
Audited Results for the year ended 30 April 2017
REVIEW OF BUSINESS
As you are aware, the objective of the Company is to find a suitable candidate for a reverse take-over and, in the meantime, to invest in smaller opportunities that may arise. As shareholders will be aware, finding suitable candidates is a time-consuming process but the Board continues to try hard to bring a transaction to fruition.
Your Directors have continued to nurture the two early stage investments in which the Company already has a direct interest, namely Prego International Limited and Mineralfields Group Limited (formerly Natural and Mineral Assets Limited). Both investments are held as Available-For-Sale as it is the intention to realise their value as soon as practicable.
Prego International Limited is a programme manager for the issuance of Prepaid MasterCards, targeted at migrant workers in the Far East and Europe, with an initial concentration in the case of Europe on Norway and the Scandinavian countries. Prego's development has been slower than we originally hoped but we remain convinced of the company's prospects for eventual success. Prego's intention remains to list its shares on a European stock exchange at the earliest opportunity and, in the meantime, has raised tranches of new investment at various prices, the latest being at 1.75 pence per share. The Company's investment in Prego is valued at £314,000 which is the price at which BWA last sold a small part of its holding.
Mineralfields Group Limited is the holding company of a small group which is in the process of obtaining mining licences in Cameroon. This company is also at an early stage but is attracting interest. The Company's holding in Mineralfields has been valued at 0.1p per share which is the price at which shares were last issued by the company and which accounts for the value attributed to them in these accounts of £293,000. Progress at the company has been severely hampered by delays in the Cameroon authorities issuing the licences, a situation in which other licence applicants find themselves, due in part to the introduction of a new Mining Law in Cameroon in 2016, the full rules surrounding which are only slowly being published. The company continues to persevere patiently to obtain the necessary approvals.
The Board is hopeful that these two investments will yield a return over the medium term having obtained the additional finance they require, obtained market listings or been the subject of trade sales. In the meantime, your Directors will continue their search for a suitable reverse take-over candidate.
Richard Battersby
Chairman
For further information, please contact:
BWA Group Plc
Richard Battersby (Non-Executive Chairman) 07836 238 172
Peterhouse Corporate Finance Limited
Mark Anwyl 020 7469 0930
INCOME STATEMENT FOR THE YEAR ENDED 30APRIL2017
| 2017 | 2016 | |
| GBP | GBP | |
| TURNOVER | - | 225,311 |
| Cost of sales | - | 136,483 |
| GROSS PROFIT | - | 88,828 |
| Administrative expenses | 31,322 | 65,115 |
| (31,322) | 23,713 | |
| Other operating income | 12,000 | - |
| OPERATING (LOSS)/PROFIT | (19,322) | 23,713 |
| Interest receivable and similar income | 16 | - |
| (LOSS)/PROFIT BEFORE TAXATION | (19,306) | 23,713 |
| Tax on (loss)/profit | - | - |
| (LOSS)/PROFIT FOR THE FINANCIAL YEAR | (19,306) | 23,713 |
| Earnings per share expressed in pence per share: | ||
| Basic | -0.02 | 0.02 |
| Diluted | -0.02 | 0.02 |
OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 APRIL 2017
| 2017 | 2016 | |
| GBP | GBP | |
| (LOSS)/PROFIT FOR THE YEAR | (19,306) | 23,713 |
| OTHER COMPREHENSIVE INCOME Unrealised gain/(loss) on revaluation of investments Income tax relating to other comprehensive income | (206) - | 453 - |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | (206) | 453 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (19,512) | 24,166 |
BALANCE SHEET AS AT 30 APRIL 2017
| 2017 | 2016 | |||
| GBP | GBP | GBP | GBP | |
| FIXED ASSETS | ||||
| Available-for-sale financial assets | 618,271 | 618,477 | ||
| CURRENT ASSETS | ||||
| Debtors | 15,774 | 20,125 | ||
| Cash at bank | 16,980 | 48,357 | ||
| 32,754 | 68,482 | |||
| CREDITORS | ||||
| Amounts falling due within one year | 80,611 | 106,413 | ||
| NET CURRENT LIABILITIES | (47,857) | (37,931) | ||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 570,414 | 580,546 | ||
| CAPITAL AND RESERVES | ||||
| Called up share capital | 560,788 | 560,788 | ||
| Share premium | 12,663 | 12,663 | ||
| A-F-S revaluation reserve | 617,881 | 618,087 | ||
| Capital redemption reserve | 288,625 | 288,625 | ||
| Retained earnings | (909,543) | (899,617) | ||
| SHAREHOLDERS' FUNDS | 570,414 | 580,546 |
The Company's audited accounts for the year ended 30 April 2017 contain the following statement by the Company's auditors:
"Emphasis of matter - Going concern
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 3 to the financial statements concerning the company's ability to continue as a going concern. At 30 April 2017 the company had a cash balance of £16,980 and net current liabilities of £47,857. These conditions, along with the other matters explained in note 3 to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.
Emphasis of matter - Valuation of investments
We draw your attention to note 3 of the financial statements, which describes the uncertainties regarding the valuation of unquoted investments. Our opinion is not modified in respect of this matter."
The Directors do not recommend the payment of a dividend.
The information above has been extracted from BWA's audited accounts for the year ended 30 April 2017.
The Directors of BWA are responsible for the contents of this announcement.
