Interim Results for the six-months to 30 June 2023

Tanfield Group PLC
24 July 2023
 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain

 

 

Tanfield Group Plc

 

("Tanfield", or "the Company")

 

Interim Results for the six-month period to 30 June 2023

 

 

Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2023. The unaudited financial information will shortly be available on the Company website at www.tanfieldgroup.com.

 

Background

 

·    Tanfield is a 49% shareholder in the equity of Snorkel International Holdings LLC ("Snorkel") following the joint venture between the Company and Xtreme Manufacturing LLC ("Xtreme") (the "Contemplated Transaction"), a company owned by Don Ahern of Ahern Rentals Inc, relating to Snorkel, in October 2013.

 

·    The Snorkel investment is valued at £19.1m.  The outcome of the US Proceedings referenced below could have an impact on this valuation.

 

·    On 22 October 2019, the Company announced that it had received a Summons and Complaint, filed in Nevada (the "US Proceedings") by subsidiaries of Xtreme, relating to the Contemplated Transaction.

 

·    On 24 October 2019, the Company announced it had become necessary to issue and serve a claim in the English High Court (the "UK Proceedings") against its former solicitors acting for the Company at the time of the Contemplated Transaction.  On 18 October 2022, the Company announced that it had settled its claims in relation to the UK Proceedings on a no-fault basis. 

 

·    The Company's loss in H1 2023 reduced to £154k (H1 2022: £499k) primarily as a consequence of a reduction in legal expenditure following the settlement of the UK Proceedings, and the elimination of finance expenses following the repayment of borrowings, in late 2022.

 

 

Overview of investments

 

As announced on 18 May 2023, in the first quarter of 2023 Snorkel's sales increased by 4.4% to US$43.5m (Q1 2022: US$41.7m).   Whilst the increase in sales was a fairly modest US$1.8m in value, the EBITDA for the first quarter of 2023 improved to a US$0.2m profit (Q1 2022: US$3.5m loss), an improvement of some US$3.7m. Further information relating to the recent performance of Snorkel can be found in the 18 May 2023 announcement.

 

The Company is now focussed on the US Proceedings which are continuing, with a jury trial currently scheduled to take place in early 2024.  However, the Board expect the trial date will be rescheduled to around the summer of 2024.  The Board continue to believe that a positive outcome to those proceedings is possible.  So far as it is necessary, the Company will continue to vigorously defend its position whilst continuing to seek advice.    

 

Further updates will be provided to Shareholders as and when appropriate.

 

 

 

 

For further information:

 

Tanfield Group Plc                                                                          020 7220 1666

Daryn Robinson                                                                                               

 

WH Ireland Limited - Nominated Advisor / Broker

James Joyce / Andrew de Andrade                                          020 7220 1666

 



 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDING 30 JUNE 2023



 

 


Six months to

30 Jun 23 (unaudited)

Six months to

30 Jun 22 (unaudited)

Year to

 31 Dec 22

 (audited)

 

 



£000's

£000's

£000's

 

 




 

 

 

Revenue



-

-

-

 

Staff costs



(77)

(52)

(242)

 

Other operating income



11

10

6,900

 

Other operating expenses



(140)

(269)

(1,163)

 

(Loss)/profit from operations



(206)

(311)

5,495

 

Finance expense



-

(188)

(565)

 

Finance income

 

 

52

-

16

 

(Loss)/profit before tax



(154)

(499)

4,946

 

Taxation



-

-

-

 

(Loss)/profit & total comprehensive income for the period attributable to equity shareholders

(154)

(499)

4,946

 

 






 

 






 

 


 


 

 

 

(Loss)/profit per share


 


 

 

 

Basic and diluted (p)



(0.09)

(0.31)

3.04

 







 



 


 

 

 



 

BALANCE SHEET

AS AT 30 JUNE 2023



 

 

 

30 Jun 23

(unaudited)

30 Jun 22

(unaudited)

31 Dec 22

(audited)

 

 

 

 

£000's

£000's

£000's

 

Non current assets






 

Non current Investments



19,100

19,100

19,100

 




19,100

19,100

19,100

 

Current assets






 

Trade and other receivables



53

67

30

 

Cash and cash equivalents



3,652

1,368

3,824

 




3,705

1,435

3,854

 







 

Total assets


 

22,805

20,535

22,954

 







 

Non-current liabilities






 

Borrowings



-

2,958

-

 




-

2,958

-

 

 






 

Current liabilities






 

Trade and other payables



69

132

64

 

 



69

132

64

 

 






 

Total liabilities

 

 

69

3,090

64

 







 

Equity






 

Share capital



8,145

8,145

8,145

 

Share premium



17,336

17,336

17,336

 

Special reserve



66,837

66,837

66,837

 

Merger reserve



1,534

1,534

1,534

 

Retained earnings



(71,116)

(76,407)

(70,962)

 

Total equity


 

22,736

17,445

22,890

 

 


 

 

 

 

 

Total equity and total liabilities


 

22,805

20,535

22,954

 

 

 





 



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

 

Six months to 30 June 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2023

8,145

17,336

-

1,534

66,837

(70,962)

22,890

 

Comprehensive income








 

Loss for the period

-

-

-

-

-

(154)

(154)

 

Total comprehensive income for the period

-

-

-

-

-

(154)

(154)

 

At 30 June 2023

8,145

17,336

-

1,534

66,837

(71,116)

22,736

 

 

 

 

 

 

 

 

 

 

Six months to 30 June 2022 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2022

8,145

17,336

-

1,534

66,837

(75,908)

17,944

 

Comprehensive income








 

Loss for the period

-

-

-

-

-

(499)

(499)

 

Total comprehensive income for the period

-

-

-

-

-

(499)

(499)

 

At 30 June 2022

8,145

17,336

-

1,534

66,837

(76,407)

17,445

 

 

 

 

 

 

 

 

 

 

Year to December 2022 (audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2022

8,145

17,336

-

1,534

66,837

(75,908)

17,944

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

-

4,946

4,946

 

Total comprehensive income for the year

-

-

-

-

-

4,946

4,946

 

At 31 December 2022

8,145

17,336

-

1,534

66,837

(70,962)

22,890

 

 

 

 


CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDING 30 JUNE 2023



 

 

Six months to 30 Jun 23 (unaudited)

Six months to 30 Jun 22 (unaudited)

Year to

 31 Dec 22

 (audited)

 

 

 

£000's

£000's

£000's

 

 





 

(Loss)/profit before tax


(154)

(499)

4,946

 

Adjustment for:

 

 

 

 

 

Finance expense


-

188

565

 

Finance income


(52)

-

(16)

 

Changes in operating assets and liabilities / working capital:





 

(Increase)/decrease in receivables


(23)

(44)

(7)

 

Increase/(decrease) in payables


5

60

(8)

 

Cash (used in)/generated by operations

 

(224)

(295)

5,480

 

Interest paid

 

-

-

(810)

 

Net cash (used in)/generated by operating activities

 

(224)

(295)

4,670

 

 





 

Cash flow from Investing Activities





 

  Interest received


52

-

16

 

Net used in investing activities

 

52

-

16

 

 





 

Cash flow from financing activities





 

  Proceeds from borrowings


-

1,075

1,375

 

  Repayment of borrowings


-

-

(2,825)

 

Net cash (used in)/generated by financing activities

 

-

1,075

(1,450)

 

 





 

Net increase in cash and cash equivalents

 

(172)

780

3,236

 

Cash and cash equivalents at the start of period


3,824

588

588

 

Cash and cash equivalents at the end of the period

 

3,652

1,368

3,824

 

 

 



 

1  Basis of preparation

The Interim Report of the Company for the six months ended 30 June 2023 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 2022 which is available on request from the Company's registered office, c/o Weightmans LLP, 1 St James' Gate, Newcastle upon Tyne, NE99 1YQ or can be downloaded from the corporate website www.tanfieldgroup.com.

 

2  Accounting Policies

Impact of accounting standards to be applied in future periods

There are a number of standards and interpretations which have been issued by the International Accounting Standards Board that are effective for periods beginning subsequent to 31 December 2023 that the Group has decided not to adopt early. The Group does not believe these standards and interpretations will have a material impact on the financial statements once adopted.

 

 

3  Loss per share

 

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

 

 


Six months

Six months

Year to

 

 


to 30 Jun 23

to 30 Jun 22

31 Dec 22

 

 


 

 

 

 

Number of shares


000's

000's

000's

 

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

 

162,907

162,907

162,907

 

 

 

 

 

Loss 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


 (154)

(499)

4,946


 

 

 

 

Loss per share from operations

 

 



 

Basic and diluted (p)

 

(0.09)

(0.31)

(3.04)

 

 

 

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