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Vulcan Industries Plc (VULC)


Monday 18 January, 2021

Vulcan Industries Plc

Interim Results for the 6 Months ended 30 September 2020

18 January  2021

Vulcan Industries plc

(“Vulcan” or the “Company”)

Interim Results for the 6 Months ended 30 September 2020

Vulcan Industries plc (AQSE: VULC) is pleased to announce its unaudited interim results for the 6-month period ended 30 September 2020.

This is the first reporting period following the company’s listing on Aquis Exchange Growth Market (“AQSE”) on 1st June 2020. These interim financial statements follow the publication of the Audited Financial Statements for the period from incorporation to 31 March 2020 which were announced on 15 January 2021.

Principal activity

The Company was established to develop a precision engineering group of companies, manufacturing and fabricating products for a global client base. The acquisition strategy is based on establishing targets that represent opportunities for synergies, helping to streamline existing operations and contributing to centralised purchasing, supply chain and operational savings.

Review of business and future developments

In the period under review the entire share capital of the Company was admitted to trading AQSE on 1 June 2020. In conjunction with the Admission, the Company raised £746,500 gross, £508,000 after expenses relating to the admission.

Activity in the first quarter of the current financial year was severely impacted by the initial COVID-19 lockdown. Nonetheless M&G Olympic Products Limited (“M&G”) operated, albeit at reduced levels, throughout the period and the remaining operations resumed activity towards the end of June 2020. By the end of the second quarter, activity levels were ahead of internal forecasts made at the time of admission to AQSE.

The financial results for the Group for the 6-month period to 30 September 2020 (“HY21”) show revenue in the quarter to 30 June 2020 of £772,000, reflecting the significant impact of the initial lockdowns, increasing to £1,416,000 in the second quarter as activity levels resumed, giving total revenue of £2,188,000 for the period (HY20: £3,015,000). The loss before interest, tax, depreciation and amortization is £1,030,000 (HY20: £448,000). After depreciation and amortization of £224,000 (HY20: £219,000) and finance costs of £306,000 (HY20; £330,000) the Group is reporting a loss after taxation of £1,560,000 (HY20: £997,000).  Of this £973,000 relates to central costs, including professional fees of £339,000 in respect of listing expenses and acquisition costs, and £242,000 of finance costs. Cash balances at 30 September 2020 were £632,000 (HY20: £158,000) and net debt was £3,818,000 (HY20: £2,882,000). 

At 30 September 2020, the Group balance sheet shows net liabilities of £1,626,000 (HY20 Net assets £692,000). Since the period end to the date of this report, the Company has raised new equity of £1,135,000 before expenses.


Activity levels in the third quarter of the current financial year continued to improve and forward order books have been rebuilt as the economy recovers. 

The acquisition of Romar Process Engineering Limited on 21st October 2020 is the first since admission.  It brings additional breadth to our fabrication capabilities and offers opportunities for manufacturing synergies and overhead efficiencies.

The Company has identified potential further acquisition opportunities and will make further announcements as negotiations progress. The board is now focused on raising additional equity to strengthen the balance sheet and to fund the cash component of future acquisition consideration.

Unaudited Consolidated Statement of Comprehensive Income
6 Months to
 30 September 2020
6 Months to
 30 September 2019
Period 24 October 2018 to 31 March 2020 
Note £000 £000 £000
Revenue 2,188 3,015 5,670
Cost of sales (1,672) (1,989) (4,627)
Gross profit 516 1,026 1,043
Operating expenses (1,445) (1,412) (3,007)
Other gains and losses 3 (325) (280) (608)
Finance costs 4 (306) (330) (622)
Loss before tax (1,560) (997) (3,194)
Income tax - - -
Loss for the period attributable to owners of the Company (1,560) (997) (3,194)
Other Comprehensive Income for the period - - -
Total Comprehensive Income for the period attributable to owners of the Company (1,560) (997) (3,194)
Earnings per share
Basic earnings per share (pence) 5 (0.68p) (0.54p) (1.82p)


Unaudited Consolidated Statement of Financial Position
30 September 2020
30 September 2019
31 March
Note Note £000
Non ? current assets
Goodwill 1,271 1,271 1,271
Other intangible assets 786 899 841
Property, plant and equipment 425 543 484
Right of use assets 977 630 1,086
Total non-current assets 3,459 3,343 3,682
Current assets
Inventories 418 423 357
Trade and other receivables 1,851 1,751 1,457
Cash and bank balances 632 158 54
Total current assets 2,902 2,332 1,868
Total assets 6,361 5,675 5,550
Current liabilities
Trade and other payables (3,499) (1,819) (3,092)
Corporation tax - (82) -
Lease liabilities (332) (358) (317)
Borrowings 6 (273) (627) (832)
Total current liabilities (4,104) (2,886) (4,241)
Non ? current liabilities
Lease liabilities (582) (230) (748)
Borrowings 6 (3,263) (1,825) (1,825)
Deferred tax liabilities (38) (42) (38)
Total non-current liabilities (3,883) (2,097) (2,611)
Total liabilities (7,987) (4,893) (6,852)
Net liabilities (1,626) 692 (1,302)

Share capital 7 98 74 80
Share premium account 7 3,030 1,812 1,812
Retained earnings (4,754) (1,194) (3,194)
Total equity attributable to the owners of the company (1,626) 692 (1,302)


Unaudited Consolidated statement of changes in equity Share
Share Premium Retained earnings Total Equity
£000 £000 £000 £000
At 1 April 2019 24 1,812 (197) 1,639
Total Comprehensive income for the period - - (997) (997)
Transactions with shareholders
Issue of shares 50 - - 50
Total transactions with shareholders for the period 50 - - 50
At 30 September 2019 74 1,812 (1,194) 692
Total Comprehensive income for the period - - (2,000) (2,000)
Transactions with shareholders
Issue of shares 6 - - 6
Total transactions with shareholders for the period 6 - -
At 31 March 2020 80 1,812 (3,194) (1,302)
Total Comprehensive income for the period - - (1,560) (1,560)
Transactions with shareholders
Issue of shares 18 1,218 - 1,236
Total transactions with shareholders for the period 18 1,218 - 1,236
At 30 September 2020 98 3,030 (4,754) (1,626)


Unaudited Consolidated Statement of Cash Flows 6 Months to 30 September 2020 6 Months to 30 September 2019 Period 24th October 2018
 to 31March 2020
Note £000 £000 £000
Loss for the period (1,560) (997) (3,194)
Adjustments for:
Finance costs 306 330 622
Depreciation of property, plant and equipment 62 59 153
Depreciation of right of use assets 107 104 281
Amortisation of intangible assets 55 53 126
Loss on disposal of property plant and equipment (15) - 12

Operating cash flows before movements in working capital
(1,045) (451) (2,000)
(Increase) / decrease in inventories (62) 141 134
(Increase) / decrease in trade and other receivables (394) 79 (237)
Increase / (decrease) in trade and other payables 474 (159) 1,777
Cash used in operating activities (1,026) (391) (326)
Investing activities
Proceeds on disposal of property, plant and equipment 15 - 4
Purchases of property, plant and equipment - - (36)
Consideration on acquisition of subsidiaries net of cash acquired, (67) (934) (908)
Net cash used in investing activities (52) (934) (940)
Financing activities
Interest paid (306) (330) (622)
Proceeds from loans and borrowings 6 927 2,089 2,414
Repayment of borrowings 6 (48) (150) (240)
Repayment of lease liabilities (153) (177) (324)
Proceeds on issue of shares 1,237 50 92
Net cash from financing activities 1,657 1,482 1,320
Net increase in cash and cash equivalents 578 157 54
Cash and cash equivalents at beginning of year 54 1 -
Effect of foreign exchange rate changes -
Cash and cash equivalents at end of year 632 158 54

Notes to the unaudited consolidated financial statements

for the 6-month period ended 30 September 2020

1.  General information

Vulcan Industries PLC is incorporated in England and Wales as a public company with registered number 11640409. The address of the Company’s registered office is 8th Floor, The Broadgate Tower, 20 Primrose Street, London, EC2A 2EW.

On 1 June 2020, the entire issued share capital of the Company was admitted to trading on the Aquis Stock Exchange Growth Market (AQSE Growth market).

These summary financial statements are presented in Sterling and are rounded to the nearest £000. which is also the currency of the primary economic environment in which the Company and Group operate (their functional currency).

Basis of accounting

The condensed consolidated financial statements of the Group for the 6 months ended 30 September 2020. which are unaudited and have not been reviewed by the Company’s Auditor, have been prepared in accordance with the International Financial Reporting Standards (‘IFRS’), as adopted by the European Union, and accounting policies adopted by the Group as set out in the annual report for the period ended 31 March 2020 (available at The Group does not anticipate any significant change in these accounting policies for the year ended 31 March 2021.

This interim report has been prepared to comply with the requirements of the Access Rulebook of the AQSE Growth Market. In preparing this report, the Group has adopted the guidance in the Access Rulebook for interim accounts which do not require that the interim condensed consolidated financial statements are prepared in accordance with IAS 34, ‘Interim financial reporting’. Whilst the financial figures included in this report have been computed in accordance with IFRSs applicable to interim periods, this report does not contain sufficient information to constitute an interim financial report as that term is defined in IFRSs.

The financial information contained in this report also does not constitute statutory accounts under the Companies Act 2006, as amended. The financial information for the period ended 31 March 2020 is based on the statutory accounts for the period then ended. The Auditors reported on those accounts. Their report was unqualified and referred to going concern as a key audit matter. They drew attention to note 3 in the financial statements, which shows conditions  which indicate  that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Their opinion was not modified in respect of this matter.

The financial statements have been prepared on the historical cost basis, except for the certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The principal accounting policies adopted are set out below.

Significant accounting policies

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up for the period ended 31 March 2020. Control is achieved when the Company has the power:

  • over the investee;
  • is exposed, or has rights, to variable returns from its involvement with the investee; and
  • has the ability to use its power to affects its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Group’s accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated on consolidation.

Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date, except that deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised and measured in accordance with IAS 12 and IAS 19 respectively.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.


Goodwill is initially recognised and measured as set out above.

Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or groups of cash-generating units) expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.

On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, net of discounts, value added taxes and other sales related taxes.

Performance obligations and timing of revenue recognition:

All of the Group’s revenue is derived from selling goods with revenue recognised at a point in time when control of the goods has transferred to the customer. This is generally when the goods are collected or delivered to the customer, or in the case of fabrication project work, when the project has been accepted by the customer. There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occurred, the Group no longer has physical possession, usually it will have a present right to payment. Consideration is received in accordance with agreed terms of sale.

Determining the contract price:

The Group’s revenue is derived from:

a)  sale of goods with fixed price lists and therefore the amount of revenue to be earned from each transaction is determined by reference to those fixed prices; or

b)  individual identifiable contracts, where the price is defined

Allocating amounts to performance obligations:

For most sales, there is a fixed unit price for each product sold. Therefore, there is no judgement involved in allocating the price to each unit ordered.

There are no long-term or service contracts in place. Sales commissions are expensed as incurred. No practical expedients are used.

Current and deferred tax assets and liabilities are offset when there is a legally enforceable right to set off.

2.  Critical accounting judgements and key sources of estimation uncertainty

In applying the Group’s accounting policies, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Going concern

The directors are confident that the existing financing set out in note 11 will remain available to the Group and, as demonstrated by equity raised since the period end, that additional sources of finance will be available. The directors, with the operating initiatives already in place and funding options available, are confident that the Group will achieve its cash flow forecasts. Therefore, the directors have prepared the financial statements on a going concern basis. These financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern.

3.  Other gains and losses

6 Months to 30 September 2020 6 Months to 30 September 2019 Period 24th October 2018
 to 31March 2020
£000 £000 £000
Listing expenses 334 132 243
Acquisition costs 6 140 156
Loss allowance on trade receivables - - 157
Other (14) 8 52
325 280 608

4.  Finance costs

6 Months to 30 September 2020 6 Months to 30 September 2019 Period 24th October 2018
 to 31March 2020
£000 £000 £000
Interest on loans, bank overdrafts and leases 254 215 498
Loan arrangement fees and other finance costs 52 115 124
306 330 622

5.  Loss per share

The calculation of the basic loss per share is based on the following data 6 Months to 30 September 2020 6 Months to 30 September 2019 Period 24th October 2018
 to 31March 2020
£000 £000 £000
Loss for the period for the purposes of basic loss per share attributable to equity holders of the Company (1,560) (997) (3,194)
Weighted average number of Ordinary Shares for the purposes of basic loss per share 229,600,485 184,327,869 175,835,336
Basic loss per share (pence) (0.68p) (0.54p) (1.82p)

The Company has issued options over ordinary shares which could potentially dilute basic earnings per share in the future. There is no difference between basic loss per share and diluted loss per share as the potential ordinary shares are anti-dilutive.

6.  Borrowings

30 September 2020
30 September 2019
31 March
£000 £000 £000
Non-current liabilities
CBIL 890 - -
Convertible loan note 548 - -
Other Loans 1,825 1,825 1,825
3,263 1,825 1,825
Current liabilities
CBIL 15 - -
Factoring facility 258 360 243
Other loans - 264 548
Bank Overdraft - 3 41
3,536 2,452 2,657

The CBIL was drawn down in September 2020.  It is repayable over 6 years, commencing September 2021.  Interest rate is 3.99%.  The loan is secured by a debenture over the Company and IVI Metallics Limited and cross guarantees from the Company and certain subsidiaries.

The other loans falling due in less than one year at 31 March 2020 are secured by means of a cross guarantee given by the Company and all subsidiaries.  On 19 May 2020, the loan was replaced by a convertible loan note with a coupon of 5%. The lender has the right to convert the outstanding principal into ordinary share of the Company at a price of 3p per share. In the event that the lender does not exercise its conversion rights by 31 March 2022, the loan shall become immediately repayable by the Company.

Other loans falling due after more than one year of £1,825,000 are secured by means of a debenture, chattels mortgage and cross guarantee entered into by the Company and each of its subsidiaries. The lender has agreed to waive the maturity date, so long as the other terms of the agreement continue to be adhered to. The loans bear an interest rate of 18% per annum.

The factoring facility is secured on certain trade receivables. There is a factoring charge of 1% of the Gross debt and a discount rate of 5% above Lloyds bank base rate on net advances. The agreement provides for 6 months’ notice by either party and certain minimum fee levels.

Reconciliation to cash flow statement

At 1 April 2020 Drawn down Repaid At 30
£000 £000 £000 £000
Secured borrowings - 1,825 905 - 2,730
Convertible loan note - 548 - - 548
Factoring facilities - 243 22 (7) 258
Bank overdraft - 41 - (41) -
Total borrowings 2,657 927 (48) 3,536


At 24
 October 2018
On Acquisition Drawn down Repaid At 31
March 2020
£000 £000 £000 £000 £000
Secured borrowings - - 1,825 - 1,825
Other loans - - 548 - 548
Factoring facilities - 483 - (240) 243
Bank overdraft - - 41 - 41
Total borrowings - 483 2,414 (240) 2,657

7.  Share capital

Number £000
Issued and fully paid:
At 24 October 2018 - -
Issued during the period 60,000,000 24
At 31 March 2019 60,000,000 24
Issued during the period 123,000,000 50
At 30 September 2019 183,000,000 74
Issued during the period 15,900,000 6
At 31 March 2020 198,900,000 80
Issued during the period 47,093,215 18
At 30 September 2020 245,993,215 98

On 11 May 2020, the Company issued 6,666,667 shares at 3p for cash.

On 1 June 2020 the entire share capital of the Company was admitted trading on the Aquis Exchange Growth Market.  In conjunction with the admission, the Company issued 21,408,331 new shares by way of a placing and subscription, raising £577,500 before expenses. The Company also issued 5,633,333 fee shares at 3p in respect of fees amounting to £169,000.

On 17 June 2020, the Company issued 3,250,000 shares at 2p to employees for cash and 166,667 shares at 3p for cash in respect of a late subscription. In addition, 5,833,333 shares were issued at 3p in settlement of outstanding fees.

On 17 June 2020 the Company issued 2,564,706 shares at 4.25p for cash.

On 8 July 2020 the company issued 1,570,178 shares at 4.5p for cash.

8.  Post balance sheet events

On 21 October 2020, the Group acquired the business and assets of Romar Process Engineering Limited for £550,000 comprising the issue of 2,500,000 shares at 6p per share, initial cash consideration of £350,000 and deferred consideration of £50,000.

On 25 November 2020 the Company issued 5,567,316 shares at 5p and 1,036,364 shares at 5.5p for cash.

On 16 December 2020 the Company issued 6,636,363 shares at 5.5p per share for cash.

On 8 January 2021 the Company issued 2,650,000 shares at 5p and 272,727 shares at 5.5p for cash.

On 14 January 2021 the Company issued 2,222,222 shares at 4.5p for cash.

a d v e r t i s e m e n t