Half-yearly Report
30 September 2013
Energiser Investments plc
("Energiser" or the "Group")
Half-yearly report for the period to 30 June 2013
Chairman's Statement
I present my report to shareholders on the results for the half year ended 30
June 2013 and the financial position at that date. The economic climate in the
south east of England has shown signs of improvement and the Group's principal
property asset located in Wellingborough, Northamptonshire, has in recent
months seen a modest increase in annualised gross rental income.
Results
Our residential development in Wellingborough generated gross rental income of
£74,000 (2012: £74,000) and after associated operating costs resulted in net
rental income of £55,000 (2012 £56,000). The Group wrote off a further £18,000
invested in the prototype high powered motor project. Administrative expenses
have reduced to £29,000 (2012: £38,000) due to a reduction in professional fees
and after finance costs of £50,000 (2012: £56,000) the loss before and after
taxation was £33,000 (2012: £38,000) resulting in a loss per share of 0.08p
(2012: 0.09p).
The net assets of the Group have reduced to £136,000 (2012: £302,000)
representing net asset value per share of 0.31p (2012: 0.69p).
The directors do not recommend the payment of a dividend.
The Group's largest shareholder, Stephen Wicks has agreed to provide further
financial support to the Group for the foreseeable future, if required. As at
30 June 2013 there were no loans due to Mr Wicks.
Operations
The development of 20 residential properties in Wellingborough is currently
fully let, generating a gross annual rental income of £151,000. The Board's
intention is still to sell these properties once the property market has
recovered to an extent that the properties reach the Board's valuation
aspirations and consequently they continue to be let on short term tenancies.
The Directors believe that the carrying value of this property portfolio has
remained at a similar level to that recorded at 31 December 2012. The Group is
continuing to look for potential small development sites and is hopeful to
secure a transaction in the near future.
The Board has also decided not to invest any further resources in the
production of a concept prototype motor and the development of a pre-production
version due to difficulties encountered at a technical level and the resulting
uncertainty over its potential success.
Outlook
The Board continues to seek new investment opportunities whilst continuing to
maximise the rental income from the Group's property portfolio.
Simon Bennett
Chairman
30 September 2013
For further information contact:
Energiser Investments plc
Nishith Malde +44 (0) 1494 762450
Cairn Financial Advisers LLP
Jo Turner +44 (0) 20 7148 7900
Group statement of comprehensive income
Unaudited Unaudited Audited
6 months 6 months year to
to 30 to 30 31
June 2013 June 2012 December
2012
Note £'000 £'000 £'000
Continuing operations
Revenue arising in the course of ordinary 5 74 74 149
activities
Development costs 5 (18) - (116)
Cost of sales 5 (19) (18) (32)
Gross Profit 37 56 1
Administrative expenses 5 (29) (38) (84)
Operating profit/(loss) 8 18 (83)
Finance costs (50) (56) (100)
Finance income 9 - 12
Loss before taxation (33) (38) (171)
Taxation - - -
Loss for the period attributable to (33) (38) (171)
shareholders of the Company
Loss per share
Basic and diluted loss per share from total 4 (0.08)p (0.09)p (0.39)p
and continuing operations
Diluted earnings per share is taken as equal to basic earnings per share as the
Group's average share price during the period is lower than the exercise price
and therefore the effect of including share options is anti-dilutive.
Group statement of financial position
Unaudited Unaudited Audited
as at 30 as at 30 as at 31
June 2013 June 2012 December
2012
Note £'000 £'000 £'000
ASSETS
Non-current assets
Financial assets at fair value through 6 1 62 1
profit and loss
Current assets
Inventories 2,567 2,550 2,566
Trade and other receivables 15 17 14
Cash and cash equivalents 4 23 7
2,586 2,590 2,587
Total assets 2,587 2,652 2,588
LIABILITIES
Current liabilities
Trade and other payables 327 303 333
Short term borrowings 879 744 815
1,206 1,047 1,148
Non-current liabilities
Long term borrowings 1,221 1,259 1,239
Financial liabilities held at fair value 24 44 32
through profit or loss
1,245 1,303 1,271
Total liabilities 2,451 2,350 2,419
Net assets 136 302 169
EQUITY
Share capital 2,312 2,312 2,312
Share premium account 5,747 5,747 5,747
Convertible loan 88 88 88
Merger reserve 1,012 1,012 1,012
Retained earnings (9,023) (8,857) (8,990)
Total equity 136 302 169
Group statement of changes in equity
Share
Share premium Convertible Merger Retained Total
capital account loan reserve earnings equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2012 2,312 5,747 88 1,012 (8,819) 340
Total comprehensive income - - - - (38) (38)
Balance at 30 June 2012 2,312 5,747 88 1,012 (8,857) 302
Total comprehensive income - - - - (133) (133)
Balance at 31 December 2012 2,312 5,747 88 1,012 (8,990) 169
Total comprehensive income - - - - (33) (33)
Balance at 30 June 2013 2,312 5,747 88 1,012 (9,023) 136
Group statement of cash flows
Unaudited Unaudited Audited
6 months 6 months year to
to 30 to 30 31
June 2013 June 2012 December
2012
£'000 £'000 £'000
Cash flows from operating activities
Loss before and after taxation (33) (38) (171)
Adjustments for:
Interest expense 50 56 100
Increase in trade and other receivables (1) (1) -
(Decrease)/increase in trade payables (34) 1 22
Fair value gain on financial liabilities recognised - - (12)
in profit or loss
Increase in inventories - - (16)
Net cash (used in)/generated from operating (18) 18 (77)
activities
Cash flows from investing activities
Purchase of investments - (61) -
Used in investing activities - (61) -
Cash flows from financing activities
Proceeds from borrowings 64 - 71
Re-payment of borrowings (18) (11) (31)
Interest paid (31) (34) (67)
Net cash generated from/(used in) financing 15 (45) (27)
activities
Net decrease in cash and cash equivalents (3) (88) (104)
Cash and cash equivalents at beginning of period 7 111 111
Cash and cash equivalents at end of period 4 23 7
1. Nature of operations and general information
The principal activity of the Group is as an investment company investing in
quoted and unquoted companies to achieve capital growth. The Group also holds a
property development acquired by way of its principal activity. The properties
are held for sale with rental income arising from short term lets.
Energiser Investments plc is the Group's ultimate parent company. It is
incorporated and domiciled in Great Britain. The address of Energiser
Investments plc's registered office, which is also its principal place of
business, is 2 Anglo Office Park, 67 White Lion Road, Amersham, Bucks, HP7 9FB.
Energiser Investments plc's shares are quoted on AIM, a market operated by the
London Stock Exchange. This consolidated interim statement has been approved
for issue by the Board of Directors on 30 September 2013.
The financial information set out in this interim statement does not constitute
statutory accounts as defined in Sections 434(3) and 435(3) of the Companies
Act 2006. The Group's statutory financial statements for the year ended 31
December 2012 have been filed with the Registrar of Companies and are available
at www.energiserinvestments.co.uk. The auditor's report on those financial
statements was unqualified and did not contain any statement under Section 498
(2) or Section 498(3) of the Companies Act 2006.
2. Basis of preparation
This consolidated interim statement has been prepared in accordance with
International Accounting Standard 34 - Interim Financial Reporting.
The consolidated interim statement should be read in conjunction with the
annual financial statements for the year ended 31 December 2012, which have
been prepared in accordance with IFRS as adopted by the European Union.
3. Accounting policies
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 31 December 2012, as described in those
financial statements
4. Loss per ordinary share
The loss per ordinary share is based on the weighted average number of ordinary
shares in issue during the period of 43,787,956 ordinary shares of 0.1p (2012:
43,787,956 ordinary shares of 0.1p) and the following figures:
Unaudited Unaudited Audited
6 months 6 months year to
to 30 to 30 31
June 2013 June 2012 December
2012
Loss attributable to equity shareholders £'000 (33) (38) (171)
Loss per ordinary share (0.08)p (0.09)p (0.39)p
Diluted earnings per share is taken as equal to basic earnings per share as the
Group's average share price during the period is lower than the exercise price
and therefore the effect of including share options is anti-dilutive.
5. Income and segmental analysis
Unaudited Unaudited Audited
6 months 6 months year to 31
to 30 to 30 December
June 2013 June 2012 2012
£'000 £'000 £'000
Segment result
Investment activities:
Development costs (18) - (116)
Administrative expenses (29) (38) (83)
(47) (38) (199)
Rental activities:
Net Rental income 55 56 117
Administrative expenses - - (1)
55 56 116
Operating profit 8 18 (83)
Finance costs (50) (56) (100)
Fair value adjustment on interest rate swap 9 - 12
Loss before tax (33) (38) (171)
Unaudited Unaudited Audited as
as at 30 as at 30 at 31
June 2013 June 2012 December
2012
£'000 £'000 £'000
Segment assets
Investment activities:
Non-current assets 1 62 1
Current assets 11 13 4
12 75 5
Rental:
Current assets - inventories 2,567 2,550 2,566
Current assets - other 8 27 17
2,575 2,577 2,583
Total assets 2,587 2,652 2,588
Segment liabilities
Investment activities:
Current liabilities 859 722 806
859 722 806
Rental:
Current liabilities 347 325 342
Non-current liabilities 1,245 1,303 1,271
1,592 1,628 1,613
Total liabilities 2,451 2,350 2,419
Total assets less total liabilities 136 302 169
The activity of both the investments and rentals arose wholly in the United
Kingdom. No single customer accounts for more than 10% of revenue.
6. Investments
In accordance with IFRS 7, financial instruments are measured by level of the
following fair value measurement hierarchy:
* Level 1: quoted prices in an active market for identical assets or
liabilities. The fair value of financial instruments traded in active
markets is based on quoted market prices at the balance sheet date. A
market is regarded as active if quoted prices are readily and regularly
available and those prices represent actual and regularly occurring market
transactions on an arm's length basis. The quoted market price used for
financial assets held by the Group is the closing price on the last day of
the financial year of the Group. These instruments are included in level 1
and comprise FTSE and AIM listed investments classified as held at fair
value through profit and loss.
* Level 2: the fair value of financial instruments that are not traded in an
active market is determined by using valuation techniques. These valuation
techniques maximise the use of observable market data where it is available
and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the
instrument is included in level 2. The Group holds no such instruments in
the current or prior year.
* Level 3: the fair value of financial instruments that are not traded in an
active market (for example, investments in unquoted companies)
is determined by using valuation techniques such as earnings multiples. If
one or more of the significant inputs is not based on observable market
data, the instrument is included in level 3.
All items held at fair value through profit and loss were designated as such
upon initial recognition. Movements in investments at fair value through profit
or loss are summarised as follows:
Level 1 Level 3
Quoted Unquoted Total
equity financial
financial
investments instruments investments
£'000 £'000 £'000
Cost
At 1 January 2012 (11) 4,907 4,896
Additions - 61 61
At 30 June 2012 (11) 4,968 4,957
Fair value losses
At 1 January 2012 12 (4,907) (4,895)
At 30 June 2012 12 (4,907) (4,895)
Fair value
At 30 June 2012 1 61 62
Cost
At 1 July 2012 (11) 4,968 4,957
Additions - (61) (61)
At 31 December 2012 (11) 4,907 4,896
Fair value losses
At 1 July 2012 12 (4,907) (4,895)
At 31 December 2012 12 (4,907) (4,895)
Fair value
At 31 December 2012 1 - 1
Cost
At 1 January 2013 (11) 4,907 4,896
Additions - - -
At 30 June 2013 (11) 4,907 4,896
Fair value losses
At 1 January 2013 12 - -
At 30 June 2013 12 (4,907) (4,895)
Fair value
At 31 December 2012 1 - 1
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