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National World PLC (NWOR)

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Wednesday 30 September, 2020

National World PLC

Results for the six month period to 30 June 2020

RNS Number : 4971A
National World PLC
30 September 2020
 

National World plc

 

("National World," or the "Company")

 

 

Results for the six month period to 30 June 2020

 

 

National World, (LSE: NWOR.L), the investment business established to create a modern platform for news publishing by implementing a new operating model powered by the latest technology, today announces its results for the six month period to 30 June 2020.

 

 

David Montgomery, Executive Chairman, said:

 

"The Covid-19 pandemic has impacted the news publishing sector, accelerating the structural impact we outlined at the time of our IPO. We remain confident in our strategy which we continue to refine in conjunction with evaluating a number of opportunities. Further updates will be provided to shareholders as appropriate."

 

 

Results for the six month period to 30 June 2020

The results for the six month period to 30 June 2020 is available on our website: https://www.nationalworld.com/investors/reports-presentations-and-publications/year/2020  

 

Excerpts of the results are set out below.

 

 

This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) NO. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of National World is Vijay Vaghela, Chief Operating Officer.

 

- Ends -

 

For further information please contact:

National World plc

David Montgomery

Vijay Vaghela

c/o Montfort Communications

 


Montfort Communications

Nick Miles

Olly Scott

 

 

+44 (0)78 1234 5205

 

 

 

Interim Management Report

 

I am pleased to present the Interim Report and Financial Statements for the six month period ended30 June 2020 for National World Plc (the "Company")

 

The Company has been established to pursue opportunities in the news publishing and digital media sector and/or in associated complementary technologies. Our objective is to create a modern platform for news publishing by implementing a new operating model powered by the latest technology.

 

National World will jettison legacy systems and archaic industrial practices to create efficient dissemination of news and to monetise it by matching content to audience.

 

The Company has continued to progress with efforts towards identifying suitable assets for acquisition. Whilst the Company has been engaged on a number of potential acquisitions during the period, no acquisitions or investments have progressed to a stage where exclusivity has been granted. Progress has been impacted by the uncertainty created by the COVID-19 outbreak which has adversely impacted news publishing businesses.

 

The impact of COVID 19 on the news publishing sector further highlights the importance and urgent need for a transformation of the industry with a new operating model and increased collaboration. We continue to explore a range of opportunities despite a rapidly changing situation.

 

The Company incurred a loss for the six month period ended 30 June 2020 of £ 118,177 from the on-going administrative expenses required to operate the Company. The Board continues to tightly manage ongoing operating costs.

 

The Group had a cash balance of £ 4,312,865 and net assets of £4,324,871 as at 30 June 2020.

 

Since December 2019, the Company's Ordinary Shares have been suspended from trading on the Main Market of the LSE as the Company was considering a potential acquisition. The shares remain suspended as the directors continue to work on potential acquisitions and look forward to presenting a value enhancing opportunity for consideration by shareholders.

 

All statements other than historical facts are forward-looking statements and the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. There are a number of potential risks and uncertainties which may have material impact on the Company's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider that there are any changes to the principal risks and uncertainties since the publication of the 2019 Annual Report and Accounts which are available on the Company's website at www.nationalworld.com.

 

David Montgomery

Executive Chairman

30 September 2020

 

 

Statement of Comprehensive Income

For the six months ended 30 June 2020

 


Note

Unaudited

Six months to 30 Jun 20

Unaudited

29 May 2019

 to 30 Jun 19

Audited

29 May 19 to 31 Dec 19



£

£

£

Continuing operations





Non-recurring costs to establish National World

5

-

-

(87,615)

Listing expenses

6

-

-

(81,268)

Administrative expenses

7

(127,900)

-

(167,392)

Operating loss


(127,900)

-

(336,275)






Finance income

8

9,723

-

1,208

Loss before tax


(118,177)

-

(335,067)






Taxation


-

-

-

Total comprehensive loss for the period attributable to the equity owners


(118,177)

-

(335,067)






Loss per share





Basic and diluted

9

(0.002)

(0.00)

(0.012)

 

The above results were derived from continuing operations.

 

The notes form part of these Interim Financial Statements.

 

 

Statement of Financial Position

As at 30 June 2020

 

Company Number: 12021298

Note

 Unaudited

As at

30 Jun 20

 Unaudited

As at

 30 Jun 19

 Audited

As at

 31 Dec 19



£

£

£

ASSETS





Current assets





Trade and other receivables

10

40,396

100

127,628

Cash and cash equivalents

11

4,312,865

-

4,383,077

Total current assets


4,353,261

100

4,510,705






Total assets


4,353,261

100

4,510,705






LIABILITIES





Current liabilities





Trade and other payables

12

28,390

-

67,657

Total current liabilities


28,390

-

67,657






Total liabilities


28,390

-

67,657






NET ASSETS


4,324,871

-

4,443,048






EQUITY





Share capital

13

54,000

100

54,000

Share premium

14

4,724,115

-

4,724,115

Accumulated losses

14

(453,244)

-

(335,067)

TOTAL EQUITY


4,324,871

100

4,443,048

 

The Interim Report and Financial Statements were approved by the Board of Directors and authorised for issue on 30 September 2020.

 

David Montgomery

Executive Chairman

 

 

The notes form part of these Interim Financial Statements.

 

 

Statement of Changes in Equity

For the six months ended 30 June 2020

 


Share Capital

Share Premium

Accumulated Losses

Total Equity


£

£

£

£

As at 29 May 2019

-

-

-

-

Transactions with owners





Issue of ordinary shares

100

-

-

100

As at 30 June 2019

100

-

-

100







Share Capital

Share Premium

Accumulated Losses

Total Equity


£

£

£

£






As at 30 June 2019

100

-

-

100

Comprehensive income





Loss for the period

-

-

(335,067)

(335,067)

Transactions with owners





Issue of ordinary shares and subdivision of shares

53,900

5,046,000

-

5,099,900

Cost to issue shares

-

(321,885)

-

(321,885)

As at 31 December 2019

54,000

4,724,115

(335,067)

4,443,048







Share Capital

Share Premium

Accumulated Losses

Total Equity


£

£

£

£

As at 31 December 2019

54,000

4,724,115

(335,067)

4,443,048

Comprehensive income





Loss for the period

-

-

(118,177)

(118,177)

As at 30 June 2020

54,000

4,724,115

(453,244)

4,324,871

 

The notes form part of these Interim Financial Statements.

 

 

Statement of Cash Flows

For the six months ended 30 June 2020

 


Note

Unaudited

Six months to 30 Jun 20

Unaudited

29 May 19 to 30 Jun 19

Audited

29 May 19 to 31 Dec 19



£

£

£

Cash flow from operating activities





Operating loss


(127,900)

-

(336,275)

Cash outflow from operating activities


(127,900)

-

(336,275)






Changes in working capital





Decrease/(Increase) in trade and other receivables

10

87,232

-

(127,628)

(Decrease)/Increase in trade and other payables

12

(39,267)

-

67,657

Net cash used in operating activities


(79,935)

-

(396,246)






Cash flows from investing activities





Interest received

8

9,723

-

1,208

Net cash generated from investing activities


9,723

-

1,208






Cash flows from financing activities





Proceeds from issue of shares, net of issue costs


-

-

4,778,115

Net cash generated from financing activities


-

-

4,778,115






Net (decrease)/increase in cash and cash equivalents


(70,212)

-

4,383,077

Cash and cash equivalents at the beginning of the period


4,383,077

-

-

Cash and cash equivalents at the end of the period


4,312,865

-

4,383,077

 

The notes form part of these Interim Financial Statements.

 

 

Notes to the Interim Financial Statements

 

1. Company information

National World PLC (the "Company") is a public company listed on the London Stock Exchange in England and Wales. The Company is domiciled in England and its registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, United Kingdom, EC4Y 0DT.

 

The principal activity of the Company is that of identifying and acquiring investment projects.

 

The Company was incorporated on 29 May 2019 and the first audited financial statements for the Company were for the period 29 May 2019 to 31 December 2019. Therefore, the comparative results for the 2019 interim financial results cover the period from 29 May 2019 to 30 June 2019.

 

 

2. Accounting policies

2.1 Basis of preparation

These financial statements of the Company have been prepared on a going concern basis in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) and adopted by the European Union, in accordance with the Companies Act 2006.

 

Measurement bases

The financial statements have been prepared under the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

 

The preparation of the financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates and management judgements in applying the accounting policies. The significant estimates and judgements that have been made and their effect is disclosed in note 3.

 

2.2 Going concern

The Company had £ 4,312,865   cash as at 30 June 2020 and ongoing operational costs of c£300,000 per annum providing significant headroom to fund costs associated with evaluating acquisitions and investments, including due diligence. On this basis, the Board considers the company to have sufficient resources to remain in operational existence for the foreseeable future.

 

2.3. Significant accounting policies  

The accounting policies adopted are consistent with those followed in the preparation of the Annual Report and Accounts of the Company for the year ended 31 December 2019. A copy of the Annual Report and Accounts is available on the Company's website at https://www.nationalworld.com/ .

 

 

3. Significant judgments and estimates

The preparation of the Company's financial statements under IFRS as endorsed by the EU requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the statement of financial position date, amounts reported for revenues and expenses during the period, and the disclosure of contingent liabilities, at the reporting date.

 

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The Directors consider that there are no critical accounting judgements or estimates relating to the financial information of the Company.

 

 

4. Loss before income tax

The loss before income tax is stated after charging:

 


Unaudited

Six months

to 30 Jun 20

Unaudited

29 May 19

to 30 Jun 19

Audited

29 May 19

to 31 Dec 19


£

£

£

Fees payable to the Company's auditors - audit of the Company's annual accounts

9,000

-

18,000

Fees payable to the Company's auditors - non-statutory audit in relation to the Company's re-registration as a plc.

-

-

2,500

Fees payable to the Company's auditors - Reporting Accountant fees

-

-

15,000

 

 

5. Non-recurring costs to establish National World

The Company incurred costs of £87,615 in the second half of 2019 which were considered to be one-off to establish National World Plc, therefore these costs were disclosed separately in the Statement of Comprehensive Income in the year ended 31 December 2019.

 

 

6. Listing Expenses

During the second half of 2019, the Company incurred £81,286 in IPO costs and other fees which were disclosed separately in the Statement of Comprehensive Income in the year ended 31 December 2019.

 

 

7. Analysis of expenses by nature

The breakdown by nature of administrative expenses is as follows:

 


Unaudited

Six months to

30 Jun 20

Unaudited

29 May 19

to 30 Jun 19

Audited

29 May 19

to 31 Dec 19


£

£

£

Staff costs

9,500

-

4,750

Accounting fees

12,800

-

8,000

Audit fees

9,000

-

18,000

Professional fees

18,400

-

97,577

Other costs, including financial PR, insurance, and other fees

78,200

-

39,065

Total administrative expenses

127,900

-

167,392

 

 

8. Finance income

 


Unaudited

Six months

to 30 Jun 20

Unaudited

29 May 19

 to 30 Jun 19

Audited

29 May 19

to 31 Dec 19


£

£

£

Bank interest

9,723

-

1,208

Total finance income

9,723

-

1,208

 

 

9. Loss per share

The loss per share has been calculated using the loss for the period and the weighted average number of ordinary shares entitled to dividend rights which were outstanding during the period, as follows:

 


Unaudited

Six months

to 30 Jun 20

Unaudited

29 May 19

to 30 Jun 19

Audited

29 May 19

to 31 Dec 19


£

£

£

Loss for the period attributable to equity holders of the Company

(118,177)

-

(335,067)

Weighted average number of ordinary shares

54,000,000

100

26,813,426

Loss per share

(0.002)

-

(0.012)

 

 

10. Trade and other receivables

 


Unaudited

30 Jun 20

Unaudited

30 Jun 19

Audited

31 Dec 19


£

£

£

Amounts falling due within one year:




Prepayments

27,764

-

41,863

Other receivables

12,632

100

85,765


40,396

100

127,628

 

The Directors consider that the carrying amount of trade and other receivables is approximately equal to their value.

 

Other receivables comprise VAT due on expenses.

 

 

11. Cash and cash equivalents

 


Unaudited

30 Jun20

Unaudited

30 Jun 19

Audited

31 Dec 19


£

£

£

Cash at bank

4,312,865

-

4,383,077


4,312,865

-

4,383,077

 

All bank balances are denominated in pounds sterling with £4.2 million held on a term deposit with Barclays Bank plc which requires 30 days' notice for any withdrawal.

 

 

12. Trade and other payables

 


Unaudited

30 Jun 20

Unaudited

30 Jun 19

Audited

31 Dec 19


£

£

£

Amounts falling due in one year:




Other taxation and social security

329

-

699

Trade payables

2,361

-

31,969

Other payables

-

-

1,234

Accruals

20,700

-

33,755


23,390

-

67,657

 

 

13. Share capital

 


Number of Shares

Share Capital

£

Share premium

£

Issued and fully paid Ordinary shares of £1 each




At 30 June 2019

100

100

-

Issued and fully paid Ordinary shares of 0.1 pence each




At 31 December 2019

54,000,000

54,000

4,724,115

At 30 June 2020

54,000,000

54,000

4,724,115

 

The Company was incorporated on 29 May 2019. On incorporation, 100 ordinary shares of £1 per par value were issued at par. On 22 July 2019, the Company performed a share subdivision to split the existing 100 ordinary shares into 100,000 ordinary shares. The new par value of the shares was 0.1p.

 

On 25 July 2019, a further 1,700,000 ordinary shares of 0.1p were issued at 2.64p for a cash consideration of £44,900 and 2,200,000 ordinary shares of 0.1p were issued at 2.5p for a cash consideration of £55,000.

 

On 19 September 2019, 50,000,000 ordinary shares of 0.1p were issued at 10p, this totalled further cash consideration of £5,000,000.

 

The holders of ordinary shares are entitled to one voting right per share and are entitled to dividends out of the profits of the Company available for distribution.

 

 

14. Reserves

Share premium

Includes all premiums in excess of the nominal value of shares received on issue of share capital.

 

Accumulated losses

Includes all losses incurred since incorporation. 

 

 

15. Related party transactions

The related parties are considered to be the Directors who each have shares on the Company. Their remuneration is as follows:

 


Unaudited

Six months

to 30 Jun 20

Unaudited

29 May 19

 to 30 Jun 19

Audited

29 May 19

to 31 Dec 19


£

£

£

Directors emoluments, including salary and fees:




D Montgomery

2,500

-

1,250

V Vaghela

2,500

-

1,250

M Hollinshead

1,500

-

750

J Rowe

1,500

-

750

S Barber

1,500

-

750


9,500

-

4,750

 

 

16. Contingent Liabilities

The Company has agreed that it will pay its former solicitors, Cooley LLP, £90,000 if the Company completes an acquisition. As this is wholly contingent on an acquisition being made, a liability has not been recognised at 30 June 2020.

 

 

17. Ultimate controlling party

The Company has no ultimate controlling party.

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