Interim results

NFT Investments PLC
16 August 2023
 

Press Release

 

16 August 2023

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014, as retained as part of the law of England and Wales. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

 

NFT Investments PLC

 

("NFT Investments" or "the Company"")

 

Interim results

 

NFT Investments PLC (AQSE: NFT), an investment firm, announces its unaudited results for the six months ended 30 June 2023.

 

Comments from Jonathan Bixby, Executive Chairman of NFT Investments:

 

I am delighted to report the Company's interim results for the six months ended 30 June 2023.

 

The Company had a net asset value of £33.983 million (3.37p per share). This is an increase of £8.953m (35.9%) in the six month reporting period.

 

I am extremely proud of our investment discipline throughout the "crypto winter".  This discipline is now starting to pay off as crypto starts to rise ahead of the halving event in April 2024. We remain committed to returning capital to investors and have successfully accomplished the reduction of the Company's share capital by way of cancellation of its share premium account announced on 20 July 2023. We remain very bullish on the medium-term crypto market.

 

Finally, we believe that the Company's strong position and the value of its assets are not fairly reflected in the share price. The Company's share price on 15 August 2023 of 1.65p represents a 51% discount to our 30 June 2023 net asset value.

 

I would like to take this opportunity to thank all our shareholders for their ongoing support.

 

Jonathan Bixby, Executive Chairman

 

 

The Directors of NFT Investments accept responsibility for this announcement.

This announcement may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.

For further information please contact:

NFT Investments


Jonathan Bixby

Executive Chairman

+44 7876 888 011

First Sentinel


Corporate Adviser

Brian Stockbridge

 

+44 7876 888 011

Tennyson Securities

 

Corporate Broker

Peter Krens

+44 207 186 9030

 

 

About NFT Investments:

NFT Investments PLC is an investment company specialising in the market for non-fungible tokens ("NFTs") and is the first ever NFT vehicle to list in a major jurisdiction worldwide. The Company invests in a diversified portfolio of NFTs, cryptocurrency, and/or in companies or funds which have exposure to NFT or blockchain technology. The Company's leadership team have an extensive track record in the cryptocurrency sector and previously founded Argo Blockchain PLC, a global crypto miner. NFT Investments is headquartered in London, UK and its shares are listed on the Aquis Stock Exchange Growth Market under the ticker symbol NFT. https://www.nftinvest.pro/

 

 

NFT Investments plc

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2023


 

Unaudited

 

Audited


 

Six months ended 30 June

 

Year ended 31 December


Note

2023

2022

 

2022


 

£

£

 

£

Revenue


-

-


-

Loss on disposal of digital assets and tokens


(25,554)



(65,548)

Fair valuation movements (including impairment and exchange differences) in investments


 (318,593)

 

96,875


(2,686,079)

Fair valuation movements (including exchange differences) in digital assets and tokens


 

 10,082,738

 

(4,060,615)


(5,465,486)



  9,738,591

(3,963,740)


(8,217,113)

Share based payment

3

(262,600)

-


-

Administrative expenses


 (805,286)

(705,157)


(1,556,872)

Operating Profit/(Loss)


8,670,705              

(4,668,897)

 

(9,773,985)

Finance income


-

448,891


402,083

Profit/(Loss) before and after taxation and total comprehensive profit/(loss) for the period


 

8,670,705

(4,220,006)

 

(9,371,902)

 






Profit/(Loss) per ordinary share:






Basic profit/(loss) per share on loss for the year

4

0.86

(0.42)


(0.93)

Diluted profit/(loss) per share on loss for the year

4

0.86

(0.42)


(0.93)

 

 

 

 

NFT Investments plc

Consolidated Statement of Financial Position            

For the six months ended 30 June 2023

 

 



Unaudited

 

Audited



 

Six months ended 30 June

 

Year ended 31 December


Note

2023

2022

 

2022



£

£

 

£

Non-Current Assets






Intangible assets

5

27,786,002

 3,208,708


15,448,382

Investments

6

 3,372,592

 6,474,140


3,691,186

Total non-current assets


 31,158,594

 9,682,848

 

  19,139,568

Current Assets






Trade and other receivables


 128,265

 171,406


 125,765

Cash and cash equivalents


 2,782,870

 20,412,854


 5,847,274

Total current assets


 2,911,135

 20,584,260

 

 5,973,039

Total assets


 34,069,729

 30,267,108

 

 25,112,607







Shareholders' equity






Share capital


 1,007,000

 1,003,000


1,003,000

Share premium


 33,359,133

 33,323,133


33,323,133

Share based payments reserve


 3,188,508

 2,925,908


2,925,908

Retained earnings


  (3,570,952)

 (7,089,761)


 (12,241,657)

Total shareholders' equity


  33,983,689

 30,162,280

 

25,010,384







Current Liabilities






Trade and other payables                                                           


86,040

104,828


 102,223

Total liabilities

 

86,040

104.828

 

 102,223

Total equity and liabilities


34,069,729

30,267,108

 

25,112,607







 

NFT Investments plc

Company Statement of Financial Position      

For the six months ended 30 June 2023

 

 

 



Unaudited

 

Audited



 

Six months ended 30 June

 

Year ended 31 December


Note

2023

2022

 

2022



£

£

 

£

Non-Current Assets






Intangible assets

5

27,786,002

 3,208,708


15,448,382

Investments

6

 3,372,593

 6,474,140


3,691,187

Total non-current assets


 31,158,595

 9,682,848

 

  19,139,569

Current Assets






Trade and other receivables


 1,910,337

 171,406


 157,837

Cash and cash equivalents


 1,000,797

 20,412,854


 5,815,201

Total current assets


 2,911,134

 20,584,260

 

 5,973,038

Total assets


34,069,729

 30,267,108

 

 25,112,607

 

 

Shareholders' equity






Share capital


 1,007,000

 1,003,000


1,003,000

Share premium


 33,359,133

 33,323,133


33,323,133

Share based payments reserve


 3,188,508

 2,925,908


2,925,908

Retained earnings


 (3,570,952)

 (7,089,761)


 (12,241,657)

Total shareholders' equity


 33,983,689

 30,162,280

 

25,010,384







Current Liabilities






Trade and other payables                               


86,040

104,828


 102,223

Total liabilities

 

86,040

104.828

 

 102,223

Total equity and liabilities


34,069,729

30,267,108

 

25,112,607

 

 

NFT Investments plc

Consolidated and Company Statement of Changes in Equity      

As at 30 June 2023

 






 

 

 

 

 

 

Share capital

 

 

Share Premium

 

Share-based payments reserve

 

 

Retained earnings

 

 

 

Total

 


£

£

£

£

£

 

Unaudited






 

Six months ended 30 June 2023






 

At 1 January 2023

1,003,000

33,323,133

2,925,908

(12,241,657)

25,010,384

 

Profit for the period and total comprehensive profit

-

-

-

8,670,705

8,670,705

 

Shares issued during the period

4,000

36,000

-

-

40,000

 

Share based payment

-

-

262,600

-

262,600

 

 

At 30 June 2023

 

1,007,000

     

33,359,133

          

3,188,508

      

(3,570,952)

   33,983,689

 

 






 

Unaudited






 

Six months ended 30 June 2022






 

At 1 January 2022

1,003,000

33,323,133

2,925,908

34,382,286

 

Loss for the year and total comprehensive loss

-

-

-

(4,220,006)

(4,220,006)

 

At 30 June 2022

1,003,000

33,323,133

2,925,908

(7,089,761)

30,162,280

 







 

Audited






 

Year ended 31 December 2022






 

At 1 January 2022

1,003,000

33,323,133

2,925,908

34,382,286

 

Loss for the year and total comprehensive loss

-

-

-

(9,371,902)

(9,371,902)

 

At 31 December 2022

1,003,000

33,323,133

2,925,908

(12,241,657)

25,010,384

 











1 There were no transactions in the Subsidiary and thus no impact on the Statement of Changes in Equity

 

 

 

NFT Investments plc

Consolidated Statement of Cash Flows           

For the six months ended 30 June 2023



 

Unaudited

 

Audited



Six months ended 30 June

 

Year ended 31 December



2023

2022

 

2022



£

£

 

£

Operating activities






Profit/(loss) for the year


8,670,705

 (4,220,006)


(9,371,902)

Adjustments:






 

Loss on disposal of digital assets and tokens


 25,554

 -  


65,548

(Profit)/loss on revaluation of digital assets and tokens


 (11,235,686)

 265,080


 7,477,130

Loss on valuation of investments


 2,258,239

 4,309,208


  2,258,239

Amortisation of software development costs


28,750

 -  


-

Share based payments


 262,600

 -  


-

Foreign exchange


 (1,051,158)

 (361,955)


(475,901)

Finance Income


 -  

 (448,891)


(402,083)







Working capital adjustments:






Increase in trade and other receivables


 (2,500)

 (45,641)


-

Decrease in trade and other payables


 (16,183)

 (19,599)


(22,204)

Net cash used in operating activities

 

 (1,059,679)

 (521,804)

 

(471,173)

Investing activities






Purchase of digital assets and tokens


 (3,174,552)

 (600,000)


  (15,949,540)

Purchase of fixed assets investments


 -  

 (817,957)


    (817,958)

Sale of intangible fixed assets


 1,129,827

 -  


        780,138

Interest received


 -  

 448,891


402,083

Net cash used in investing activities

 

 (2,044,725)

 (969,066)

 

(15,585,277)







Financing activities






Share issue


40,000

-


-

Net cash from financing activities

 

40,000

-

 

-







Net decrease in cash and cash equivalents


 (3,064,404)

 (1,490,870)


(16,056,450)

Cash and cash equivalents at start of year


5,847,274

21,903,724


21,903,724

Cash and cash equivalents at end of year

 

2,782,870

20,412,854

 

5,847,274

 

 

NFT Investments plc

Company Statement of Cash Flows     

For the six months ended 30 June 2023



 

Unaudited

 

Audited



Six months ended 30 June

 

Year ended 31 December



2023

2022

 

2022



£

£

 

£

Operating activities






Profit/(loss) for the year


 8,670,705

 (4,220,006)


(9,371,902)

Adjustments:






 

Loss on disposal of digital assets and tokens


 25,554

 -  


65,548

(Profit)/loss on revaluation of digital assets and tokens


 (11,235,686)

 265,080


 7,477,130

Loss on valuation of investments


 2,258,239

 4,309,208


  2,258,239

Amortisation of software development costs


28,750

 -  


-

Share based payments


 262,600

 -  


-

Foreign exchange


 (1,051,158)

 (361,955)


(475,901)

Finance Income


 -  

 (448,891)


(402,083)







Working capital adjustments:






Increase in trade and other receivables


 (1,752,500)

 (45,641)


(32,072)

Decrease in trade and other payables


 (16,183)

 (19,599)


(22,204)

Net cash used in operating activities

 

 (2,809,679)

 (521,804)

 

(503,245)

Investing activities






Purchase of digital assets and tokens


 (3,174,552)

 (600,000)


  (15,949,540)

Purchase of fixed assets investments


 -  

 (817,957)


    (817,959)

Sale of intangible fixed assets


 1,129,827

 -  


        780,138

Interest received


 -  

 448,891


402,083

Net cash used in investing activities

 

 (2,044,725)

 (969,066)

 

(15,585,278)







Financing activities






Share issue


40,000

-


-

Net cash from financing activities

 

40,000

-

 

-







Net decrease in cash and cash equivalents


 (4,814,404)

 (1,490,870)


(16,088,523)

Cash and cash equivalents at start of year


5,815,201

21,903,724


21,903,724

Cash and cash equivalents at end of year

 

1,000,797

20,412,854

 

5,815,201

 

 

Notes to the Interim Financial Statements for the six months ended 30 June 2023     

 

 

The interim results of NFT Investments plc are prepared in accordance with the requirements of IAS 34 Interim Financial Reporting and are prepared in accordance with the accounting policies set out in the last financial statements for the year ended 31 December 2022. NFT Investments plc expects to apply the same policies in its financial statements for the year ending 31 December 2023.

 

The financial information for the six months ended 30 June 2023 and for the six months ended 30 June 2022 have neither been audited nor reviewed by the Company's auditors. The comparative financial information for the year ended 31 December 2022 has been derived from the audited financial statements for that period.

 

Basis of Consolidation

Where the Company has control over an investee, it is classified as a subsidiary. The Company controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

 

The consolidated financial statements present the results of the Company and its subsidiaries as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. All subsidiaries have a reporting date of December.

 

The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date on which control ceases.

 

On consolidation, the results of overseas operations are translated into pounds sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date.

 

Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in profit or loss in Group entities' separate financial statements on the translation of long-term monetary items forming part of the Group's net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation.

 

On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the profit or loss on disposal.

Profit/(loss) of Parent Company

As permitted by Section 408 of the Companies Act 2006, the statement of comprehensive income of the Parent Company is not presented as part of these financial statements. The Parent Company's profit/(loss) for the financial period was £8,670,705 (period ending 30 June 2022: (£4,220,006) and year ended 31 December 2022: (£9,371,902).

 

2.   Critical accounting estimates and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

Investments

On acquisition, investments are valued at cost as this is deemed to be the fair value. Subsequent to this, management uses valuation techniques and other relevant information to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm's length transaction at the reporting date.

 

 

At each balance sheet date, a review of impairment in value is undertaken and the Company follows the guidance of IFRS 9 to determine when a financial asset is impaired. This determination requires significant judgement. In making this judgement, management evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost, and the financial health of, and short-term business outlook for, the investee, including factors such as industry and sector performance, changes in technology and operational, financing cash flow and proposed fundraising.

The Company operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Company. The fair value of the employee services received in exchange for the grant of options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted:

•          including any market performance conditions;

•          excluding the impact of any service and non-market performance vesting conditions (for example, profitability, sales growth targets and remaining an employee of the entity over a specified time period); and

•           excluding the impact of any non-vesting conditions (for example, the requirement of employees to save).

 

Assumptions about the number of options that are expected to vest include consideration of non-market vesting conditions. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the Statement of Comprehensive Income, with a corresponding adjustment to equity.

 

When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

4.   Profit/(loss) per ordinary share

The calculation of a basic profit/(loss) per share is based on the profit/(loss) for the period attributable to equity holders of the Company and on the weighted average number of shares in issue during the period.

 

Diluted profit/(loss) per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

 

For the six months ended 30 June 2023, there is no difference between the basic earnings per share and the diluted earnings per share. The exercise prices of the outstanding share options are above the average market price of the shares and are therefore not dilutive under IAS 33 Earnings Per Share.

 

For the year-ended 31 December 2022 and six months ended 30 June 2023, there is no difference between the diluted loss per share and the basic loss per share presented due to the loss position of the Company.

5.   Intangible Assets

 

Group and Company

 

 

Digital assets and tokens

£

 

Software development costs

£

Total

£

Cost






Balance at 1 January 2023


15,160,882


287,500

15,448,382

Additions


3,174,552


-

3,174,552

Disposals


(1,129,827)


-

(1,129,827)

Net fair value gain for the year


10,321,645


-

10,321,645

As at 30 June 2023

 

27,527,252


287,500

27,814,752

 






Accumulated Amortisation






Balance at 1 January 2023


-


-

-

Charge for the period


-


28,750

28,750

As at 30 June 2023


-

 

28,750

28,750

 


 

 

 

 

Net book value as at 30 June 2023


27,527,252

 

258,750

27,786,002

 

 

 

Digital assets and tokens

£

 

External software development costs

£

Total

£

Cost






Balance at 1 January 2022


6,917,916


-

6,917,916

Additions


600,000


-

600,000

Disposals


-


-

-

Net fair value loss for the year


(4,309,208)


-

(4,309,208)

As at 30 June 2022

 

3,208,708


-

3,208,708

 






Net book value as at 30 June 2022


3,208,708

 

-

3,208,708

 






Cost






Balance at 1 January 2022


6,917,916


-

6,917,916

Additions


15,662,040


287,500

15,949,540

Disposals


(780,138)


-

(780,138)

Net fair value loss for the year


(6,638,936)


-

(6,638,936)

As at 31 December 2022

 

15,160,882

 

287,500

15,448,382

 






Net book value as at 31 December 2022


15,160,882

 

287,500

15,448,382

 

The breakdown for all digital assets and tokens held at 30 June 2023 are listed below:

 

Token name

 

 

Number of tokens

 

 

Platform traded on

 

 

£

Bitcoin BTC


626


Copper, Cold Storage


15,066,741

DigitalBits XDB


751,500


Copper


303

Ethereum ETH


6,794


Copper, Cold Storage


10,361,456

Optimism OP


732,899


Cold Storage


784,100

Cosmos ATOM


57,902


Copper


426,549

NEAR Protocol


225,362


Copper


245,747

Lido DAO


396,144


Copper, Cold Storage


642,356







27,527,252

 

6.   Investments

 

Group

 

Six months ended 30 June

 

Year ended 31 December

 

2023

£

2022

£

 

2022

£

At start of the period

3,691,186

5,559,308


5,559,308

Additions

-

817,957


817,958

Impairments

-

-


(1,735,824)

Revaluations

(148,593)

(265,080)


 (522,415)

Exchange difference

(170,001)

361,955


 (427,841)

At end of the period

3,372,592

6,474,140

 

 3,691,186

 

 

Company

 

Six months ended 30 June

 

Year ended 31 December

 

2023

£

2022

£

 

2022

£

At start of the period

3,691,187

5,559,308


5,559,308

Additions

-

817,957


817,959

Impairments

-

-


(1,735,824)

Revaluations

(148,593)

(265,080)


 (522,415)

Exchange difference

(170,001)

361,955


 (427,841)

At end of the period

3,372,593

6,474,140

 

 3,691,187

 

 

The country of incorporation and investment class for investments held by the Group at 30 June 2023 are listed below:

 

 

£

Country of Incorporation

Investment class

 

 

 

 

Pioneer Media Holdings Inc

5,944

Canada

Listed

AEON International

786,650

Hong Kong

Unlisted

Big Head Club

175,467

Canada

Unlisted

NFT Studios Ltd

786,650

UK

Unlisted

Afterparty Inc

652,920

USA

Safe note

Big Whale Labs Inc

178,311

Canada

Safe note

Oliver Labs Inc

786,650

USA

Safe note


3,372,592



 

 

The Company has the following investment directly in subsidiaries at 30 June 2023:

Name and registered address of company

Share-

holding

Value of share-holding

£

Country of incorporation

Nature of business

1319644 B.C. Ltd

700-401 West Georgia Street, Vancouver BC

V6B 5A1

Canada

100%

1

Canada

Company has not traded during the period

 

 

 

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