Interim Financial Statements

RNS Number : 3789S

Worthington Group PLC

29 November 2012

 



WORTHINGTON GROUP PLC

Interim Financial Statements

for the half year ended

30^th September 2012

CHIEF EXECUTIVE'S STATEMENT

The Company's revenue increased to £111,000 (2011: £47,000) which resulted in a gross profit of £105,000 (2011: loss of £34,000). However, increased Pension costs, being mainly legal fees, of £140,000 (2011: £28,000), plus fees for the fund raising of £600,000 of new capital and loans described later herein, resulted in the Company recording  a net loss for the period of £267,000 (2011: £187,000). This includes non-cash charges in the period of £50,000 (2011: £55,000) in relation to pension scheme finance costs.

We are pleased to report that Trimmings by Design, our associated company, continued to trade profitably and the Company recognised a profit of £46,000 (2011: £19,000) in the period. No dividend distribution was received from them in the period (2011: £44,000).

Following the demolition of the remaining buildings at the Keighley site, as expected, the rental income reduced to £1,000 (2011: £47,000). The Company is currently in negotiations with the local authority over how to best utilise the now cleared Keighley site. Some land owned by the local authority may need to be included in any planning application. Therefore, before proceeding with an application, it is important that the Company knows what value the local authority place on the parcels of land required for a successful application.

In order to fund working capital, on the 9^th July 2012, the directors issued 350,000 new ordinary 10p shares at 10.45p each, raising proceeds of £36,575 before costs, for the Company. On 6^th August 2012, the directors issued a further 900,000 new ordinary 10p shares at 10.2p each, raising proceeds of £91,800 before costs, for the Company. The subscribers to these new ordinary shares also received warrants to subscribe for 2,500,000 new ordinary shares at 5p each, this subscription price is subject to shareholders approving a capital reorganisation. These warrants are exercisable within 5 years of the dates of subscription of the ordinary shares.

In addition, since the period end, the Company has issued £475,000 of Secured Convertible Loan Stock, secured by a first charge on the Company's assets. The Convertible Loan Stock gives holders the right to convert each £1 of Loan Stock into 20 new ordinary shares, within 7 years of issue, this conversion rate is subject to shareholders approving a capital reorganisation. Holders of £13,606.90 of the Convertible Loan Stock have elected in November to convert them into 136,069 new ordinary shares at 10p. The subscribers to the Convertible Loan Stock have also received warrants to subscribe for 9,500,000 new ordinary shares at a price of 5p each, this subscription price is subject to shareholders approving a capital reorganisation. These warrants are exercisable for a period of 5 years from the date of issue.

Following completion of the fund raising, as described above, the Pension Scheme funding risk continues to represent the principle risk factor faced by the Company.  We continue to monitor the Pension Scheme investments and liabilities, which represent the key risks to the Company at present. Details of our principal risk factors can be found in the director's report on page 3 of the 2012 Annual Report and Accounts. There have been no significant changes to the principal risks in the half year to 30^th September 2012. However, the administrators of Rangers FC have now been replaced by BDO as liquidators and litigants. The Company is still confident that the £3m of Pension Scheme funds, currently held under a court order with regard to an uncompleted loan, will be returned to the Pension Scheme in due course, along with costs.

Doug Ware

Chief Executive

29 November 2012                                                                      Website:         www.worthingtongroup.co.uk

Enquiries:          Anne Aylesbury, PD Cosec Limited

                        Company Secretary, Worthington Group plc on 020 8940 0963

                        Roland Cornish,  Beaumont Cornish Limited on 020 7628 3396

This interim report may contain forward-looking statements based on current expectations of, and assumptions and forecasts made by management. Various known and unknown risks, uncertainties and other factors could lead to substantial differences between the actual future results and, financial situation development or performance of the company and the estimates and historical results given herein. Undue reliance should not be placed on forward looking statements which speak only as at the date of this document.  We undertake no obligation publicly to update or revise any forward-looking statements, except as may be required by law.

Worthington Group plc

Income Statement

for the six months ended 30 September 2012

	Unaudited 6 months ended 30 September 2012 £'000	Unaudited 6 months ended 30 September 2011 £'000	Audited Year ended 31 March 2012 £'000
Continuing operations
Revenue	111	47	43
Cost of sales	(6)	(81)	(115)
	____	____	____
Gross profit/(loss)	105	(34)	(72)
Administrative expenses	(260)	(89)	(165)
Share based payment	-	(61)	(166)
Pension  expenses	(140)	(28)	(235)
	____	____	____
Operating loss	(295)	(212)	(638)
Investment revenues and management charges	32	61	87
Pension finance costs	(50)	(55)	(101)
Share of results of associates	46	19	27
	____	____	____
Loss before taxation	(267)	(187)	(625)
Taxation	-	-	-
	____	____	____
Loss on ordinary activities after taxation	(267)	(187)	(625)
	____	____	____
Loss per share
Basic	(2.2p)	(1.6p)	(5.3p)
--	____	____	____
Fully diluted	N/A	N/A	N/A
--	____	____	____

Statement of Comprehensive Income	Unaudited 6 months ended 30 September 2012 £'000	Unaudited 6 months ended 30 September 2011 £'000	Audited Year ended 31 March 2012 £'000
Loss for the period	(267)	(187)	(625)
Actuarial loss on retirement benefit obligation	-	-	(979)
	____	____	____
Total comprehensive loss for the period	(267)	(187)	(1,604)
	____	____	____

Worthington Group plc

Statement Of Financial Position

at 30 September 2012

	Unaudited 30 September 2012 £'000	Unaudited 30 September 2011 £'000	Audited 31 March 2012 £'000
Non-current assets
Investment Property	-	4,000	-
Interests in associates	187	134	140
Other financial assets	800	800	800
	_____	_____	_____
	987	4,934	940
	_____	_____	_____
Current assets
Inventories	4,000	-	4,000
Trade and other receivables	295	74	34
Cash and bank balance	101	455	264
	_____	_____	_____
	4,396	529	4,298
	_____	_____	_____
Total assets	5,383	5,463	5,238
Current liabilities
Trade and other payables	(395)	(110)	(106)
Non-current liabilities
Retirement benefit obligation	(3.928)	(2,842)	(3,933)
	_____	_____	_____
Total liabilities	(4,323)	(2,952)	( 4,039)
	_____	_____	_____
Net assets	1,060	2,511	1,199
	_____	_____	_____
Equity
Called up share capital	1,306	1,181	1,181
Share premium account	9,839	9,836	9,836
Other reserve	10,626	10,626	10,626
Share based payment reserve	166	61	166
Retained earnings	(20,877)	(19,193)	(20,610)
	_____	_____	_____
Total equity	1,060	2,511	1,199
	_____	_____	_____

Worthington Group plc Statement Of Changes In Equity for the periods to 30 September 2012
	Share capital £'000	Share premium £'000	Other Reserve £'000	Share based Compensation £'000	Retained earnings £'000	Total equity £'000
As at 1 April 2011                           11,807                                                                                                                                        9,836                                                                                                             (20,556)           1,087	1,181	9,836	10,626	-	(19,006)	2,637
Share based compensation	-	-	-	61	-	61
Total comprehensive income for the period	-	-	-	-	(187)	(187)
	______	_____	_____	_____	______	_____
As at 30 September 2011	1,181	9,836	10,626	61	(19,193)	2,511
Share based compensation	-		-	105	-	105
Total comprehensive income for the period	-	-	-	-	(1,417)	(1,417)
	______	_____	_____	_____	______	_____
As at 31 March 2012	1,181	9,836	10,626	166	(20,610)	1,199
Issue of ordinary shares	125	3	-	-	-	128
Total comprehensive income for the period	-	-	-	-	(267)	(267)
	______	______	______	______	______	_____
As at 30 September 2012	1,306	9,839	10,626	166	(20,877)	1,060
	______	______	______	______	______	_____

Worthington Group plc

Cash Flow Statement

for the six months ended 30 September 2012

	Unaudited 6 months ended 30 September 2012 £'000	Unaudited 6 months ended 30 September 2011 £'000	Audited Year ended 31 March 2012 £'000
Cash flow from operating activities
Operating loss for the period	(295)	(212)	(638)
Movement in trade and other receivables	(27)	(38)	(99)
Movement in trade and other payables	145	23	102
Share based payment	-	61	166
Payments to retirement benefit scheme	(55)	(55)	11
	_____	_____	_____
Net cash outflow from operating activities	(232)	(221)	(464)
	_____	_____	_____
Cash flows from investing activities
Interest received	32	35	87
Dividend received from associated undertaking	-	44	44
Loans advanced	(264)	-	-
Loans repaid	30	350	350
	____	_____	_____
Net cash (used in)/from investing activities	(202)	429	481
	_____	_____	_____
Cash flows from financing activities
Proceeds from issue of new shares	128	-	-
Proceeds from new loans	143	-	-
	____	_____	_____
Net cash generated by financing activities	271	-	-
	_____	_____	_____
(Decrease)/increase in cash and cash equivalents	(163)	208	17
Cash and cash equivalents at the beginning of the period	264	247	247
	_____	_____	_____
Cash and cash equivalents at end of period	101	455	264
	_____	_____	_____
Cash and cash equivalents comprise cash held at bank.

Worthington Group plc

Notes to the Interim Financial Statements for the six months ending 30^th September 2012

1. General Information

Worthington Group plc is a company incorporated in the United Kingdom.The Company has its primary listing on the London Stock Exchange.

These condensed interim financial statements were approved for issue on 29 November 2012.  These interim financial statements do not constitute statutory accounts as defined by section 434 of the Companies Act 2006. Full accounts of the company for the year ended 31 March 2012 on which the Auditors gave an unqualified report, have been delivered to the Registrar of Companies.

2. Basis of preparation

These condensed interim financial statements for the 6 months ended 30 September 2012 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34 'Interim Financial Reporting' as adopted by the European Union. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2012, which have been prepared in accordance with IFRS's as adopted by the European Union.

Going Concern

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. On this basis, the directors consider it appropriate to prepare the interim financial statements on the going concern basis.

3. Significant accounting policies

The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the annual financial statements for the year ended 31March 2012, as described in those financial statements. Any new amended Accounting Standards applicable for the period do not have a significant effect. These accounting policies are expected to be applied for the full year to 31 March 2013.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

4. Segmental analysis

The company only has one operating segment relating to property rental and management of businesses. Disclosure is in accordance with IAS 34. All operations are continuing and in the UK.

5. Earnings per share

The calculation of basic and diluted earnings per share is based upon the loss for the period and the weighted average number of shares in issue during the period. There is no difference between basic and diluted earnings per share in either period.

	Unaudited 6 months ended 30 September 2012 No:	Unaudited 6 months ended 30 September 2011 No:	Audited Year ended 31 March 2012 No:
Weighted average number of shares	12,240,709	11,807,013	11,807,014
	_________	_________	_________
	Unaudited 6 months ended 30 September 2012 Pence	Unaudited 6 months ended 30 September 2011 pence	Audited Year ended 31 March 2012 pence
Loss per share	(2.2p)	(1.6p)	(5.3p)
	_____	_____	_____

Worthington Group plc

Notes to the Interim Financial Statements for the six months ending 30^th September 2012

6. Share capital
	Unaudited	Unaudited	Audited
	30 September	30 September	31 March
	2012	2011	2012
	£'000	£'000	£'000
Authorised:
New ordinary shares 10p each
52,736,850 (2011: 52,736,850)	5,274	5,274	5,274
	_________	_________	_________
Allotted, called up and fully paid:
New ordinary shares 10p each
13,057,014 ( 2011: 11,807,014)	1,306	1,181	1,181
	_________	_________	_________

On the 9^th July 2012 the directors issued 350,000 new ordinary 10p shares at 10.45p each raising proceeds of £36,575 before costs for the Company. On 6^th August 2012 the directors issued a further 900,000 new ordinary 10p shares at 10.2p each raising proceeds of £91,800 before costs for the Company. The subscribers to the ordinary shares will also receive 2,500,000 warrants to subscribe for new ordinary shares at 5p each subject to shareholders approving a capital reorganisation. These warrants are exercisable within 5 years of the subscription of the ordinary shares.

As at 30 September 2012 options were outstanding in respect of a total of 3,935,671 new ordinary 10p shares exercisable at a price of 11p. In addition warrants to subscribe for 2,500,000 shares at 5p are outstanding at 30 September 2012.

In November 2012 the Company issued £475,000 Secured Convertible Loan Stock secured as a first charge on the Company's assets. The convertible gives holders the right to convert each £1 of Loan Stock into 20 new ordinary shares within 7 years of issue. In addition subscribers to the loan stock will also receive 9,500,000 warrants to subscribe for new ordinary shares at a price of 5p each subject to shareholders approving a capital reorganisation. These warrants are exercisable for a period of 5 years from the date of issue.  Holders of £13,606.90 of the loan stock elected to convert it into 136,069 new ordinary shares.

 Worthington Group plc

Notes to the Interim Financial Statements for the six months ending 30^th September 2012

7. Directors' Statement of Responsibilities

The Directors confirm to the best of their knowledge:

  • The condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

  • The interim management report includes a fair review of the information required by DTR 4.2.7R being an indication of important events that have occurred during the first 26 weeks of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining 26 weeks of the year; and

  • The interim management report includes a fair review of the information required by DTR 4.2.8R being disclosure of related party transactions and changes therein since the last annual report.

By order of the Board   -        Doug Ware

                                      -        David Simpson

29 November 2012

8.  Related party transactions

Included in other financial assets are loan notes of £800,000 (31 March 2012 - £800,000) due from Trimmings by Design Limited an associated company in which the Company has a 44% interest.  The loan notes are subject to interest at 6.5% amounting to an interest revenue for the period of £26,000 (6 months to 30 September 2011 - £26,000) and as at the period end there was £13,000 (31 March 2012 - £13,000) of unpaid interest within Trade and other receivables.

9. Availability of Interim Report

A copy of this report is available on the company's website at www.worthingtongroupplc.co.uk. Copies are being sent to shareholders and are also available from The Secretary, Worthington Group plc, 1 The Green, Richmond, Surrey TW9 1PL.

 

END

 

 

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