Source - RNS
RNS Number : 4968K
Tanfield Group PLC
22 September 2016
 



Tanfield Group Plc

 

("Tanfield", or "the Company")

 

Interim Results for the six-month period to 30 June 2016

 

Tanfield Group Plc, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2016. The unaudited financial statements are 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 Group Plc 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 by more than 25% compared to H1 2015.

·     Smith Electric continues to seek funding.

·     Balance Sheet investment values:

Snorkel £36.3m ($60.1m) based on the exchange rate at the date of receipt of the holding equivalent to 23.6p per share.  This compares to £46m based on the current exchange rate, equivalent to 29.9p per share.

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

·     The net book value of the Company is £36.4m equivalent to 23.7p per share.

 

 

Overview of investments

 

During the first six months of 2016, Snorkel achieved sales growth in excess of 25% compared to the same period in 2015 which resulted in $70m of sales for the period. The Board feels encouraged by the additional sales which have been achieved and is not aware of any reason why, with the ongoing efforts to further improve the product offering and customer experience, along with the continued commitment to Snorkel by the 51% beneficial owner, this trend should not continue.

 

As announced in the 2015 final results on 27 June 2016, the investment in Smith Electric 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 / Nick Prowting                                      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 2016










Six months to

30 Jun 16 (unaudited)

Six months to

30 Jun 15 (unaudited)

Year to

 31 Dec 15

 (audited)

 




£000's

£000's

£000's

 






 

Revenue



-

-

-

 

Staff costs



(44)

(90)

618

 

Other operating income



14

15

27

 

Other operating expenses



(79)

(100)

(268)

 

(Loss)/profit from operations before impairments



(109)

377

 

Impairment of investments



-

-

(4,770)

 

Loss from operations after impairments



(109)

(4,393)

 

Finance expense



(8)

(34)

(54)

 

Finance income



-

-

1

 

Net finance expense



(8)

(53)

 





 

Loss from operations before tax



(117)

(4,446)

 

Taxation



-

-

-

 

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

(117)

(209)

(4,446)

 






 







 

Loss per share

 






 

Earnings/(loss) per share from operations






 

Basic and diluted (p)



(0.09)

(0.15)

(3.1)

 







 







 



 

BALANCE SHEET

AS AT 30 JUNE 2016










30 Jun 16

(unaudited)

30 Jun 15

(unaudited)

31 Dec 15

(audited)

 




£000's

£000's

£000's

 

Non current assets






 

Non current Investments



36,283

41,053

36,283

 




36,283

41,053

36,283

 

Current assets






 

Trade and other receivables



102

154

98

 

Cash and cash equivalents



364

157

94

 




466

311

192

 







 

Total assets



36,749

41,364

36,475

 







 

Current liabilities






 

Trade and other payables



100

119

110

 




100

119

110

 

Non-current liabilities






 

Other payables



262

1,601

254

 




262

1,601

254

 







 

Total liabilities



362

1,720

364

 







 

Equity






 

Share capital



7,686

7,187

7,546

 

Share premium



17,053

16,455

16,800

 

Share option reserve



461

845

461

 

Special reserve



66,837

66,837

66,837

 

Merger reserve



1,534

1,534

1,534

 

Retained earnings



(57,184)

(53,214)

(57,067)

 

Total equity



36,387

39,644

36,111

 







 

Total equity and total liabilities



36,749

41,364

36,475

 






 



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 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 6 month period ended 30 June 2015









 










At 1 January 2015


7,187

16,455

845

1,534

66,837

(53,005)

39,853

Comprehensive income









Loss for the period


-

-

-

-

-

(209)

(209)

Total comprehensive income for the period


-

-

-

-

-

(209)

(209)

At 30 June 2015


7,187

16,455

845

1,534

66,837

(53,214)

39,644










 

For the year ended 31 December 2015









 










 

At 1 January 2015


7,187

16,455

845

1,534

66,837

(53,005)

39,853

 

Comprehensive income









 

Profit for the year


-

-

-

-

-

(4,446)

(4,446)

 

Total comprehensive income for the year


-

-

-

-

-

(4,446)

(4,446)

 

Transactions with owners in their capacity as owners:-









 

   Issuance of new shares


359

345

-

-

-

-

704

 

   Share based payments


-

-

(384)

-

-

384

-

 

At 31 December 2015


7,546

16,800

461

1,534

66,837

(57,067)

36,111

 


CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDING 30 JUNE 2016





Six months to 30 Jun 16 (unaudited)

Six months to 30 Jun 15 (unaudited)

Year to

 31 Dec 15

 (audited)

 



£000's

£000's

£000's

 






 

Loss before interest and taxation


(109)

(175)

(4,393)

 

Loss on impairment of investments


-

-

4,770

 

Operating cash flows before movements in working capital


(109)

(175)

(377)

 

(Increase)/decrease in receivables


(12)

(28)

(25)

 

Increase/(decrease) in payables


(1)

25

(1,331)

 

Net cash used in operations


(122)

(178)

(979)

 






 

Interest paid


-

(34)

-

 

Net cash used in operating activities


(122)

(212)

(979)

 






 

Cash flow from Investing Activities





 

Interest received


-

-

-

 

Net cash from investing activities


-

-

-

 






 






 

Cash flow from financing activities





 

Proceeds from issuance of ordinary shares net of costs


392

-

704

 

Net cash from financing activities


-

-

704

 

Net increase/(decrease) in cash and cash equivalents


270

(212)

(275)

 

Cash and cash equivalents at the start of period


94

369

369

 

Cash and cash equivalents at the end of the period


364

157

94

 



 

1  Basis of preparation

The Interim Report of the Company for the six months ended 30 June 2016 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 2015 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 2015, 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 16

to 30 Jun 15

31 Dec 15



000's

000's

000's

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


152,464

143,741

144,823

Effect of dilutive potential ordinary shares from share options


149

635

171

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


12,613

144,376

144,994

 

Loss


Six months

Six months

Year to



to 30 Jun 16

to 30 Jun 15

31 Dec 15

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


(139)

(209)

(4,446)

Potential dilutive ordinary shares from share options


-

-

-

Loss for the purposes of diluted earnings per share


(139)

(209)

(4,446)






Loss per share from operations





Basic (p)


(0.09)

(0.15)

(3.1)

Diluted (p) a


(0.09)

(0.15)

(3.1)

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 2014 and June 2015. 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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