Half-year Report

RNS Number : 9786P
Tanfield Group PLC
06 September 2017
 

Tanfield Group Plc

 

("Tanfield", or "the Company")

 

Interim Results for the six-month period to 30 June 2017

 

Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2017. The unaudited financial information will shortly be available on the Company website at www.tanfieldgroup.com.

 

Background

 

The Company is currently defined as an investing company that has two passive investments. This status resulted from the disposal of Smith Electric Vehicles in 2010 and the disposal of Snorkel Europe Limited in October 2013.  Tanfield currently owns 49% of Snorkel International Holdings LLC ("Snorkel") and 5.76% of Smith Electric Vehicles Corp. ("Smith").

 

The strategy of the Company in relation to these investments is to return as much as possible of any realised value to shareholders as events occur and circumstances allow, subject to compliance with any legal requirements associated with such distributions.

 

Summary

·     Further sales growth achieved by Snorkel in the first six months of the year, up 13% compared to H1 2016 and profitable for the period.

·     Snorkel carrying value is £36.3m which represents approximately 23p per share.

·     Smith continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015. 

 

Overview of investments

 

Based on the unauditied financial information received from Snorkel, during the first six months of 2017 the business achieved sales of $79.7m, an increase of 13% compared to the same period in 2016, with an operating profit, excluding depreciation, of $1.5m (H1 2016: $1.4m loss).  Should the trend of sales growth continue for the remainder of the year, the Board believes 2017 could be a profitable year for the Snorkel business and is of the opinion that the investment in Snorkel will result in a return to shareholders in the future.  However, at the current rate of growth it is not expected to materialise until after 30 September 2018, when the outcome becomes uncertain and the return to shareholders could therefore be greater or less than the current carrying value.

 

In 2015 the investment in Smith was impaired to nil due to the uncertainty around its future and the level of funding it required. The situation continues to be monitored and should some significant progress be made then an update will be provided.

 

 

For further information:

 

Tanfield Group Plc

Daryn Robinson                                                                0700 349 7489

 

WH Ireland Limited - Nominated Advisor

James Joyce / Alex Bond                                              020 7220 1666

 

Peterhouse Corporate Finance - Broker

Peter Greensmith / Duncan Vasey                           020 7220 9797
 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDING 30 JUNE 2017

 

 

 

 

 

 

 

 

 

Six months to

30 Jun 17 (unaudited)

Six months to

30 Jun 16 (unaudited)

Year to

 31 Dec 16

 (audited)

 

 

 

 

£000's

£000's

£000's

 

 

 

 

 

 

 

 

Revenue

 

 

-

-

-

 

Staff costs

 

 

(44)

(44)

(85)

 

Other operating income

 

 

16

14

30

 

Other operating expenses

 

 

(81)

(79)

(182)

 

(Loss)/profit from operations before impairments

 

 

(109)

(109)

(237)

 

Finance expense

 

 

-

(8)

(13)

 

Finance income

 

 

-

-

1

 

Net finance expense

 

 

-

(8)

(12)

 

 

 

 

 

 

Loss from operations before tax

 

 

(109)

(117)

(249)

 

Taxation

 

 

-

-

-

 

Loss & total comprehensive income for the period attributable to equity shareholders

(109)

(117)

(249)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

Earnings/(loss) per share from operations

 

 

 

 

 

 

Basic and diluted (p)

 

 

(0.1)

(0.1)

 

(0.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                               
 

 

BALANCE SHEET

AS AT 30 JUNE 2017

 

 

 

 

 

 

 

 

 

30 Jun 17

(unaudited)

30 Jun 16

(unaudited)

31 Dec 16

(audited)

 

 

 

 

£000's

£000's

£000's

 

Non current assets

 

 

 

 

 

Non current Investments

 

 

36,283

36,283

36,283

 

 

 

 

36,283

36,283

36,283

 

Current assets

 

 

 

 

 

Trade and other receivables

 

 

65

102

61

 

Cash and cash equivalents

 

 

166

364

269

 

 

 

 

231

466

330

 

 

 

 

 

 

 

 

Total assets

 

 

36,514

36,749

36,613

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

 

101

100

91

 

 

 

 

101

100

91

 

Non-current liabilities

 

 

 

 

 

Other payables

 

 

-

262

-

 

 

 

 

-

262

-

 

 

 

 

 

 

 

 

Total liabilities

 

 

101

362

 

91

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

 

 

7,816

7,686

7,816

 

Share premium

 

 

17,190

17,053

17,190

 

Share option reserve

 

 

459

461

459

 

Special reserve

 

 

66,837

66,837

66,837

 

Merger reserve

 

 

1,534

1,534

1,534

 

Retained earnings

 

 

(57,423)

(57,184)

(57,314)

 

Total equity

 

 

36,413

36,387

36,522

 

 

 

 

 

 

 

 

Total equity and total liabilities

 

 

36,514

36,749

36,613

 

 

 

 

 

 

 

 

 

                       

 

STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

 

Share capital

 

Share premium

 

Share option reserve

 

Merger reserve

 

Special reserve

 

Retained earnings

 

Total

 

 

£000's

£000's

£000's

£000's

£000's

£000's

£000's

For the 6 month period ended 30 June 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2017

 

7,816

17,190

459

1,534

66,837

(57,314)

36,522

Comprehensive income

 

 

 

 

 

 

 

 

Loss for the period

 

-

-

-

-

-

(109)

(109)

Total comprehensive income for the period

 

-

-

-

-

-

(109)

(109)

At 30 June 2017

 

7,816

17,190

459

1,534

66,837

(57,423)

36,413

 

 

 

 

 

 

 

 

 

 

For the 6 month period ended 30 June 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2016

 

7,546

16,800

461

1,534

66,837

(57,067)

36,111

Comprehensive income

 

 

 

 

 

 

 

 

Loss for the period

 

-

-

-

-

-

(117)

(117)

Total comprehensive income for the period

 

-

-

-

-

-

(117)

(117)

Transactions with owners in their capacity as owners:-

 

 

 

 

 

 

 

 

 

   Issuance of new shares

 

140

253

-

-

-

-

393

 

At 30 June 2016

 

7,686

17,053

461

1,534

66,837

(57,184)

36,387

 

 

 

 

 

 

 

 

 

 

For the year ended 31 December 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2016

 

7,546

16,800

461

1,534

66,837

(57,067)

36,111

 

Comprehensive income

 

 

 

 

 

 

 

 

 

Profit for the year

 

-

-

-

-

-

(249)

(249)

 

Total comprehensive income for the year

 

-

-

-

-

-

(249)

(249)

 

Transactions with owners in their capacity as owners:-

 

 

 

 

 

 

 

 

 

   Issuance of new shares

 

270

390

-

-

-

-

660

 

   Share based payments

 

-

-

(2)

-

-

2

-

 

At 31 December 2016

 

7,816

17,190

459

1,534

66,837

(57,314)

36,522

 

                                                       

 

 

CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDING 30 JUNE 2017

 

 

 

 

Six months to 30 Jun 17 (unaudited)

Six months to 30 Jun 16 (unaudited)

Year to

 31 Dec 16

 (audited)

 

 

 

£000's

£000's

£000's

 

 

 

 

 

 

 

Loss before interest and taxation

 

(109)

(109)

(237)

 

Operating cash flows before movements in working capital

 

(109)

(109)

(237)

 

Decrease/(increase) in receivables

 

5

(12)

25

 

Increase/(decrease) in payables

 

1

(1)

(273)

 

Net cash used in operating activities

 

(103)

(122)

(485)

 

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

Proceeds from issuance of ordinary shares net of costs

 

-

392

660

 

Net cash from financing activities

 

-

-

660

 

Net (decrease)/increase in cash and cash equivalents

 

(103)

270

175

 

Cash and cash equivalents at the start of period

 

269

94

94

 

Cash and cash equivalents at the end of the period

 

166

364

269

 

               
 

 

1  Basis of preparation

The Interim Report of the Company for the six months ended 30 June 2017 has been prepared in accordance with AIM Rule 18 and not in accordance with IAS34 "Interim Financial Reporting" therefore is not fully in compliance with IFRS.

 

The half year report does not constitute financial statements as defined in Section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for full annual statements.  It should be read in conjunction with the annual report and financial statements for the year ended 31 December 2016 which is available on request from the Company's registered office, Sandgate House, 102 Quayside, Newcastle upon Tyne NE1 3DX or can be downloaded from the corporate website www.tanfieldgroup.com.

 

 

2  Accounting Policies

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2016, as described in those financial statements.  In particular, the accounts have been prepared on a going concern basis, and as set out on page 16 of those financial statements. 

 

 

 

 

3  Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

 

 

Number of shares

 

Six months

Six months

Year to

 

 

 

to 30 Jun 17

to 30 Jun 16

31 Dec 16

 

 

 

000's

000's

000's

 

Weighted average number of ordinary shares for the purposes of basic earnings per share

 

156,324

152,464

153,677

 

Effect of dilutive potential ordinary shares from share options

 

129

149

122

 

Weighted average number of ordinary shares for the purposes of diluted earnings per share

 

156,453

152,613

153,799

 

 

 

Loss

 

Six months

Six months

Year to

 

 

 

to 30 Jun 17

to 30 Jun 16

31 Dec 16

 

From operations

 

000's

000's

000's

 

Loss for the purposes of basic earnings per share being net profit attributable to owners of the parent

 

(109)

(139)

(249)

 

Potential dilutive ordinary shares from share options

 

-

-

-

 

Loss for the purposes of diluted earnings per share

 

(109)

(139)

(249)

 

 

 

 

 

 

 

Loss per share from operations

 

 

 

 

 

Basic (p)

 

(0.1)

(0.1)

(0.2)

 

Diluted (p) a

 

(0.1)

(0.1)

(0.2)

 

aIAS33 defines dilution as a reduction in earnings per share or an increase in loss per share resulting from the assumption that options are exercised. As the potential dilutive ordinary shares from share options reduce the loss per share these shares are omitted from the dilutive loss per share calculation in June 2016 and June 2017. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                             

 


This information is provided by RNS
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