Source - PRN

V22 Plc

("V22", the “Company” or, together with its subsidiary, the "Group")

Interim Report for Half-Year Ended 30 June 2016

V22 Plc announces the Group's results for the six-month period to 30 June 2016.

Co-Chairperson's statement

  • In the half year to 30 June 2016, V22 generated a profit after tax of GBP 190,232 (2015: loss of GBP (18,198).

  • The Group's net asset value per share (valuing the art portfolio at cost) increased to

    1.55 pence (2015: 1.00 pence), 65% above the year end value of 0.94 pence.

  • The collection has not been revalued at the half year, therefore for the purposes of these interim results and to assess the value of the art portfolio, the Directors have used the valuation as at 31 December 2015 of GBP 1,670,429.

  • Using the art portfolio valuation figure as at 31 December 2015, the Group’s net asset value per share is 5.10 pence. This does not take into consideration any possible movement in the value of the portfolio since 1 January 2016.

  • As at 30 June 2016 the Group had a cash balance of GBP 47,690.


The Directors are pleased to report our results for the half year. Much of the profit comes through the sale of part of an option on our Peckham/South Bermondsey premises. As reported in May 2016, in conjunction with entering into a lease agreement on the building, V22 accrued an interest entitling the Company to an option to acquire 30 per cent of the freehold interest in the building. During the period the Company sold 50 per cent of its option for a consideration of GBP 225,000 in cash. The remaining 50 per cent is still held by the Company.

The success of our property strategy is also reflected in the increase in net asset value. Our subsidiary V22 London Ltd was delighted to enter into a 125-year lease on Louise House in Forest Hill, London, in May this year. A premium of GBP 250,000 was paid for the long leasehold and we expect the upside of a revised valuation to be reflected in the accounts at the end of 2016. As part of funding arrangements for our not-for-profit company, V22 London sold a long lease on the rear building of this property to V22 Foundation. V22 Foundation raised significant grant funding from the Mayor of London and Arts Council England toward repairs for the properties and landscaping works for the gardens. We look forward to inviting shareholders to view the buildings and celebrate V22’s ten-year anniversary later in 2016.

Although these two significant steps are welcomed and make great headline announcements, the hard work continues behind the scenes. As part of the growth strategy of V22 London, they have taken on an extra 41,588 square foot of lettable space in the last year – as reflected in growing turnover and corresponding increased costs. The second phase of works on its premises in Hackney Wick were completed in June 2016 and lettings were agreed. Income from this will only be realised post this period and will be reflected in the year end results. V22 London continues to manage its original Dalston building, which is fully let, with a waiting list. It is also managing buildings in Forest Hill, Peckham, Hackney Wick and Lewisham, and will shortly take on a lease of a new property in Shoreditch, on the city fringe. V22 London is also piloting a workspace crèche in its Dalston premises for tenants who are working parents (another project supported by the Mayor of London) and the introduction of letting of desk spaces across a number of locations.

Future strategy is centred around driving income and controlling costs whilst taking advantage of opportunities for growth and further development. V22 continues to expand in scope and reputation and, as ever, we would like to thank our artists, shareholders, staff, business partners, advisors and friends for their on-going support.

Co-Chairperson Co-Chairperson
G. Hunt K. T. Cranswick


30 September 2016

V22 PLC Interim Report for Half-Year Ended 30 June 2016
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2016
Unaudited Unaudited Audited
6 months to 6 months to 12 Months to
30-Jun-16 30-Jun-15 31-Dec-15
Note GBP GBP GBP
TURNOVER 587,005 358,045 822,314
Cost of sales 496,407 276,383 621,940
GROSS PROFIT 90,598 81,662 200,374
Administration expenses 165,784 92,128 229,722
OPERATING LOSS (75,186) (10,466) (29,348)
Other Non-Operating Income 1 279,545 0 0
Interest payable and similar charges 3,218 2,475 4,691
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 201,141 (12,941) (34,039)
Tax on profit on ordinary activities 10,909 5,257 6,336
PROFIT FOR THE FINANCIAL YEAR 190,232 (18,198) (40,375)
Other comprehensive income 0 0 0
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR 190,232 (18,198) (40,375)
PROFIT PER SHARE – basic 0.60p (0.06)p (0.13)p
Note 1
This comprises of:
Disposal of a fixed asset – GBP 54,545
Sale of an option – GBP 225,000

   

V22 PLC Interim Report for Half-Year Ended 30 June 2016
GROUP BALANCE SHEET
30 JUNE 2016
Unaudited Unaudited Audited
30-Jun-16 30-Jun-15 31-Dec-15
GBP GBP GBP
FIXED ASSETS
Tangible assets 429,274 98,997 179,233
CURRENT ASSETS
Debtors 258,195 129,041 80,114
Trade investments 558,181 555,758 558,181
Cash at bank and in hand 47,690 52,900 36,984
864,066 737,699 675,279
CREDITORS:
Amounts falling due within one year 745,684 522,337 495,667
NET CURRENT ASSETS 118,382 215,362 179,613
TOTAL ASSETS LESS CURRRENT LIABILITIES 547,656 314,359 358,845
CREDITORS:
Amounts falling due after more than one year (42,654) (20,118) (56,784)
PROVISION FOR LIABILITIES (18,720) 0 (7,811)
NET ASSETS 486,282 294,241 294,250
CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Called up share capital 6,650 6,444 6,629
Share premium account 713,289 689,510 711,510
Profit and Loss account (233,657) (401,713) (423,889)
SHAREHOLDERS' FUNDS 486,282 294,241  294,250
Net Asset Value per share (valuing current asset investments at the lowers of cost and net realisable value) 1.55p 1.00p 0.94p
Net Asset Value per share if current asset investments valued at last valuation (31 December 2015) 5.10p 3.84p 4.49p

Interim report notes

  1. The interim report was approved by the Directors on 30 September 2016.

  2. The financial information for the period ended 30 June 2016 has not been audited or reviewed by the Group's auditors and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

  3. These interim financial statements consolidate the financial statements of the Company and its subsidiary, V22 London Limited.

  4. Current asset investments - art collection. The art collection which is valued at the lower of cost and net realisable value.

The Directors of the Company accept responsibility for this announcement.

-ENDS-

Contact Details:

V22 PLC:
Tara Cranswick
Email: [email protected]

PETERHOUSE CORPORATE FINANCE LIMITED
Fungai Ndoro and Eran Zucker
+44 20 7469 0930