EcoVista PLC (EVTP)
EcoVista PLC: Audited Annual Results for the year ended 31 August 2019
05-March-2020 / 15:08 GMT/BST
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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 EUR 4m.
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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