VSA CAPITAL GROUP PLC 
By 5 April 2012
Trading update
VSA Capital Group announces a trading update for the year
ended 31 March 2012.
As announced on 16 January 2012, the Directors are pleased to
confirm that net profit for the year ended 31 March 2012 is
expected to be in excess of £500,000. The Board believes this
is a good result for the first full year of trading by the
Group's principal operating subsidiary, VSA Capital Limited
("VSA"). The balance sheet of the Group has been
substantially improved during the course of the year and cash
balances at the year-end are expected to exceed £1.5 million
with gross assets exceeding £3.5 million.
During the year, VSA has invested selectively in people to
build its capabilities and it expects to continue this
investment in the year ahead as it positions itself to become
a leading independent resources focused investment bank in
London. It expects to start secondary trading this summer and
hopes to obtain NOMAD status before the end of 2012.
The Directors are also pleased to announce that the Group is
currently floating its first "cash shell", Anglo African
Agriculture Plc, on PLUS-SX, which will have a mandate to
invest in projects focussed on African agriculture. This will
be a fledgling business but the Directors believe one with
great growth potential and its creation follows their
strategy of giving the Group more proprietary capability. The
Group will make an initial investment of £50,000 into this
new company.
The Board has today granted options to a Director and staff
over 4,966,000 ordinary shares in the Group at an exercise
price of 9 pence per share. Included in this amount are
options over 236,000 ordinary shares granted to Andrew Monk,
CEO.
Following the allotment, Andrew Monk's aggregate interests in
the capital of the Group will comprise:
Shares | % of total share capital | Options exercisable at: | Warrants exercisable at: | ||||
Shares | % of total share capital | 9p | 10p | 15p | 8p | 10p | |
Monk, Andrew | 5,400,000 | 12.36% | 236,000 | 850,000 | 400,000 | 62,500 | 250,000 |
In addition, options over 1,850,000 ordinary shares previously granted to certain key members of staff more than 12 months ago at an exercise price of 15 pence per share were cancelled. The effective re-pricing of certain options is not expected to be a recurring event.
Loan Notes
The Board is in discussions with the holders of the Loan
Notes (one of whom is Andrew Monk), which were issued in
connection with the purchase of VSA Capital Limited by the
Group, with a view to redeeming these Loan Notes early on the
basis that this amount would be immediately re- invested into
VSA Capital Group via a placing of new ordinary shares,
effectively converting the debt into equity ("Proposed
Redemption").
These actions would generate a cash flow benefit to the
Group, save on potential future interest payments at 9% per
annum and would strengthen its balance sheet. If effected the
Proposed Redemption would constitute a related party
transaction under the AIM Rules for Companies. An
announcement will be made in due course should these
discussions reach a successful conclusion.
The Board announces that Peter Joy, the Group's Finance
Director, has tendered his resignation from the board and
will be leaving the group within the next six months in order
to pursue other interests.
Peter joined VSA Capital Group in February 2010 when the
Group was a loss making software business and leaves
following its transformation into a profitable and growing
Natural Resources Investment Bank.
The Board has already started its search to find a suitable
new replacement as Group Finance
Director and Peter will be assisting with this process. For
further information, please contact:
Andrew Monk, CEO 020 3005 5000
Blythe Weigh CommunicationsTim Blythe 020 7138 3204
Shore Capital and Corporate LimitedBidhi Bhoma or Toby Gibbs 020 7408 4090
Rivington Street Corporate FinanceJon Levinson 020 7562 3357
NOTES TO EDITORS
VSA Capital Group plc is an international investment banking
and institutional broking group headquartered in London. Via
its subsidiary, VSA Capital Limited, the group provides
corporate finance, broking, research, sales and capital
raising capabilities to companies in the natural resources
sectors; Oil & Gas, Mining, Agriculture and Timber.
VSA Capital Limited is authorised and regulated by the FSA
and advises companies listed in London (AIM and the Main
Market), Canada (TSX) Australia (ASX) and the USA (OTCBB)
with assets on every continent. The firm currently has 20
retained corporate clients with an aggregate market value of
over $1bn.
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