Pires Investments PLC : Interim results 2013

Pires Investments PLC

("Pires" or the "Company")

Unaudited interim results for the six months to 30 April 2013

Chairman's Statement

Pires Investments plc, the investing company focussing on the resources and energy sectors, announces its interim results for the six months ended 30 April 2013.

During the period under review, Pires has continued to consider investment and reverse takeover opportunities in line with its stated investment policy and has made a number

of investments in quoted and unquoted securities to implement this policy as required by

Rule 15 of the AIM Rules. The Group balance sheet, which shows investments of

£446,395, reflects this.

Since the year end, the Company has realised this portfolio in part and in view of the recent Stock Market performance of the sectors in which it has invested the Directors are keeping the Company's remaining investments under regular review.

On 30 July 2013, the Company announced a placing of £500,000 through the issue of new ordinary shares at par. This represents a significant premium both to the present share price and to net asset value and reflects the confidence of new investors that Pires will deliver value to shareholders in the long run through the implementation of its investing policy.

The Board has now reached the conclusion, in view of the present market sentiment towards the resource sector, that this should no longer be the sole focus of the Company although there remain, the Directors believe, some good resource opportunities. The Board is now seeing a broader range of potentially attractive opportunities, some of which are now under active review. The Board believes that it will be beneficial to invest in a series of such opportunities either at or shortly prior to their coming to market.

The Board will seek shareholder approval for an amended investing policy at a general meeting to be convened in the near future. The Board believes that it can then move forward fairly rapidly in evaluating and hopefully completing on a material transaction and so build shareholder value.

Peter Redmond

Chairman

Enquiries:

Pires Investments plc

Peter Redmond, Director

Tel: +44 (0) 20 7766 0082

Nominated Adviser

Cairn Financial Advisers LLP Liam Murray / Avi Robinson

Tel: +44 (0) 20 7148 7900

Broker

Peterhouse Corporate Finance

Jon Levinson / Lucy Williams

Tel: +44 (0) 20 7469 0935

Tel: +44 (0) 20 7469 0936

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 April 2013
Unaudited Unaudited Audited
6 months 6 months Year ended ended Ended
30-Apr 30-Apr 31-Oct
2013 2012 2012
Continuing activities £ £ £ Notes
Revenue - - - Administrative expenses (197,377) (184,860) (382,600) Exceptional credit resulting from CVA - 1,536,191 1,526,949

Operating (loss)/profit from continuing
activities (197,377) 1,351,331 1,144,349
Finance income 2,343 - 835
Finance costs - (50,653) (50,789)
(Loss)/profit before taxation from

continuing activities (195,034) 1,300,678 1,094,395

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 April 2013
NON-CURRENT ASSETS
Notes
Unaudited Unaudited Audited
As at As at As at
30-Apr 30-Apr 31-Oct
2013 2012 2012
£ £ £

Property, plant and equipment - 167,300 - Investments 446,395 - -
TOTAL NON CURRENT ASSETS 446,395 167,300 -
CURRENT ASSETS
Trade and other receivables 100,289 33,375 86,794
Cash and cash equivalents 590,165 1,582,188 1,241,015

TOTAL CURRENT ASSETS 690,454 1,615,563 1,327,809

TOTAL ASSETS 1,136,849 1,782,863 1,327,809

EQUITY
Called up share capital 11,353,192 11,287,103 11,287,103
Share premium account 2,949,340 2,932,818 2,932,818
Equity share capital to be issued
(including premium)
- - 82,611

Retained earnings (13,517,843) (13,077,356) (13,322,809) Capital redemption reserve 164,667 164,667 164,667
TOTAL EQUITY 4 949,356 1,307,232 1,144,390
LIABILITIES
CURRENT LIABILITIES
Borrowings - 167,300 - Trade and other payables 187,493 308,331 183,419

TOTAL CURRENT LIABILITIES 187,493 475,631 183,419

TOTAL LIABILITIES 187,493 475,631 183,419

TOTAL EQUITY AND LIABILITIES 1,136,849 1,782,863 1,327,809

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30 April 2013
Unaudited Unaudited Audited
6 months ended
6 months ended
Year ended ended

Notes
30-Apr 30-Apr 31-Oct
2013 2012 2012
£ £ £

Notes to the Unaudited Interim Report
1. GENERAL INFORMATION
Pires Investments PLC (the "Company") is a company domiciled in England whose registered office address is c/o Morrison & Foerster, CityPoint, One Ropemaker Street, London EC2Y 9AW. The condensed consolidated interim financial statements of the Company for the six months ended
30 April 2013 is that of the Company and its subsidiary (together referred to as the "Group").
The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
The financial information for the year ended 31 October 2012 has been extracted from the statutory accounts for that period which were prepared in accordance with International Financial Reporting Standards ("IFRS"). The auditors' report on the statutory accounts was unqualified. A copy of those financial statements has been filed with the Registrar of Companies.
The financial information for the six months ended 30 April 2012 and 2013 was also prepared in accordance with IFRS.
The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements.
The condensed interim financial statements were authorised for issue on 30 July 2013.
2. BASIS OF ACCOUNTING
The consolidated financial statements are unaudited and have been prepared on the historical cost basis in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS") using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 October 2012. As permitted, the interim report has been prepared in accordance with the AIM rules for Companies and is not compliant in all respects with IAS 34 Interim Financial Statements. The condensed consolidated interim financial statements do not include all the information required for full annual financial statements and hence cannot be construed as in full compliance with IFRS.
3. LOSS PER SHARE
The calculation of the basic loss per share is based on the following data:
Unaudited Unaudited Audited
6 months 6 months Year ended ended ended
30-Apr 30-Apr 31-Oct
2013 2012 2012
£ £ £ (Loss)/profit on continuing activities after tax (195,034) 1,300,678 1,094,395
(Loss)/profit on continuing and discontinued activities after tax
(195,034) 1,046,141 781,476
Basic
Basic loss/(earnings) per share have been computed based on the following data:
Number of shares
Weighted average number of ordinary shares for the period
Basic (loss)/earnings per share from continuing activities (p)
Basic (loss)/earnings per share from continuing
1,821,690,338 153,922,503 954,477,964 (0.01) 0.85 0.11
and discontinued activities (p) (0.01) 0.68 0.08
Diluted
The dilution which might potentially arise from the exercise of warrants outstanding entitling the holders to subscribe new ordinary shares representing 6% of the issued ordinary share capital of the Company from time to time has been considered for the relevant periods and diluted earnings per share have been computed where the effect is not anti-dilutive using the following data:
Number of shares
Weighted average number of ordinary shares for the period
N/A 156,490,201 966,300,516
Diluted (loss)/earnings per share from continuing activities (p)
Diluted (loss)/earnings per share from continuing
N/A 0.83 0.11
and discontinued activities (p) N/A 0.67 0.08
There are also 2,021,791 warrants exercisable at 119p per share on 1 December 2013 that could potentially reduce future earnings per share but which are anti-dilutive for each of the above periods.
In addition, there were 91,428 shares that could have been issued upon exercise of outstanding share options which lapsed during the year ended 31 October 2012 and which would have been anti-dilutive.

4. STATEMENT OF CHANGES IN EQUITY

5. NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
Cash flow from operations
Unaudited Unaudited Audited
6 months 6 months Year ended ended ended
30-Apr 30-Apr 31-Oct
2013 2012 2012
£ £ £
(Loss)/profit (195,034) 1,046,141 781,476
Depreciation - 6,706 6,706
Realised and unrealised loss on investments 53,081 - - Loss on disposal of fixed assets - 6,714 6,714
Loss on disposal of discontinued activities - 283,755 283,755
Extraordinary credit from CVA - (1,536,191) (1,526,949) Share based payments - - 19,212
Finance income (2,265) - (835) Finance costs - 50,789 50,789
Decrease/(increase) in inventories - 10,597 10,597

Decrease/(increase) in receivables (11,268) (17,552) (70,971) Increase/(decrease) in payables 1,846 195,864 144,457 Cash flow from operations (153,640) 46,823 (295,049)
6. DISTRIBUTION OF INTERIM REPORT
Copies of the Interim Report for the six months ended 30 April 2013 can be obtained from the Registered Office during normal business hours and are available on the Company's website, www.piresinvestments.com.

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