Interim Results for the Six M

RNS Number : 5594T

Energiser Investments PLC

30 September 2010

 



ENERGISER INVESTMENTS PLC

("Energiser" or "the Company")

Interim Results for the Six Months to 30 June 2010

The Board of Energiser announces its interim results for the six months ended 30 June 2010.

CHAIRMAN'S STATEMENT 

RESULTS

I am pleased to report a profit before taxation of £0.18 million (2009: loss £0.14 million) for the six months ended 30 June 2010. The basic profit per share was 0.57p (2009: loss per share 0.52p). The results include £297,000 profit booked by the Company for settling a long term liability of £397,000 for £100,000 in cash. This is a one off occurrence and it is therefore unlikely that the results for the second half of the year will match those of the first half. The net assets of Energiser have increased to £0.445 million from the £0.255 million I reported at 31 December 2009 and the net liabilities of £0.538 million for the comparative period last year.

The directors do not intend to recommend a dividend.

OPERATIONS

There has been good progress at our development site in Wellingborough, Northamptonshire. Construction is now complete at this development, which originally comprised of 29 new freehold houses in what is considered to be an attractive living environment. 9 houses were previously sold and 18 houses are currently let, with tenants identified for the remaining 2. The anticipated annual rent roll, on a fully let basis, will be approximately £147,000 per annum. The carrying value of the properties amounts to £2.4m.

The Board is pleased to announce that following the completion of the development, we have entered into a 25 year term loan from Barclays Bank of £1.36 million, secured on the Wellingborough development, at an interest cost of base rate plus 2.75%. The terms of the loan required us to hedge £900,000 so as to fix the base rate at 1.98% per annum.

In addition to the funding provided by Barclays Bank, the Group has also received loans from Mr Stephen Wicks, Energiser Investments' largest shareholder. Mr Wicks owns approximately 61 per cent of the Company's issued share capital and at 30 June 2010 the amount of his loan and accrued interest was £262,000. The loan has been advanced on commercial terms and is secured on the Group's assets. Mr Wicks has agreed that his outstanding loan will not be repayable for a minimum of twelve months from 7 June 2010 unless the Company is able to do so. Energiser continues to rely on financial support from Mr Wicks, which he has provided on a secured basis at 4% above base rates. This support is expected to continue for the foreseeable future and constitutes a related party transaction under the AIM rules for companies and accordingly the Directors consider, having consulted the Company's nominated advisor, that the terms of the facility are fair and reasonable insofar as shareholders are concerned.

Following the sale of our shares in Physiomics plc, we no longer have any significant holdings in our investment portfolio.

OUTLOOK

Notwithstanding the improvement in the Company's net assets, the Board is cautious about the outlook for the UK property market at present. Having said that, the Board is evaluating some new opportunities in this sector with a view to expanding the Group's property portfolio.

Simon Bennett

30 September 2010

For further information contact:

Energiser Investments plc
Nishith Malde	[phone]
finnCap Limited
Marc Young (Corporate finance)	[phone]
Joanna Weaving (Corporate Broking)

Group income statement

	Unaudited 6 months to 30 June 2010	Unaudited 6 months to 30 June 2009	Audited Year to 31  December 2009
Note	£'000	£'000	£'000

Continuing operations

Change in fair value of investments	(11)	15	896
Other income	367	37	84
Administrative expenses	(85)	(142)	(295)

	-------------------------	-------------------------	-------------------------
Gross profit/(loss)	271	(90)	685

Finance costs	(97)	(57)	(154)
Finance income	8	-	-

	-------------------------	-------------------------	-------------------------
Profit/(loss) before tax	182	(147)	531

Taxation

-

-

-

	-------------------------	-------------------------	-------------------------
Profit/(loss) for the period	182	(147)	531

=========================

=========================

=========================

Profit/(loss) per share: 

Basic and diluted profit/(loss) per share from   total and continuing operations         5	0.57p	(0.52)p	1.87p
	=========================	=========================	=========================

Group balance sheet

	Unaudited 30 June 2010	Unaudited 30 June 2009	Audited 31 December 2009
Note	£'000	£'000	£'000

ASSETS

Non-current assets
Financial assets at fair value through profit and loss                                                                       4	1	193	228
	-------------------------	-------------------------	-------------------------

Current assets Inventories	2,494	2,252	2,393
Trade and other receivables	16	69	17
Other current assets	-	131	-
Cash and cash equivalents	72	8	270

	-------------------------	-------------------------	-------------------------
	2,582	2,460	2,680

	-------------------------	-------------------------	-------------------------
Total assets	2,583	2,653	2,908
	-------------------------	-------------------------	-------------------------

LIABILITIES
Current liabilities
Trade and other payables	287	415	313
Short-term borrowings	1,851	2,431	2,007

	-------------------------	-------------------------	-------------------------
	2,138	2,846	2,320

-------------------------

-------------------------

-------------------------

Non-current liabilities
Long-term borrowings	-	325	333
Other payables	-	20	-

	-------------------------	-------------------------	-------------------------
Total non-current liabilities	-	345	333

	-------------------------	-------------------------	-------------------------
Total liabilities	2,138	3,191	2,653

	-------------------------	-------------------------	-------------------------
Net assets/(liabilities)	445	(538)	255
	=========================	=========================	=========================

EQUITY

Equity attributable to equity holders of the parent
Share capital	2,300	2,296	2,300
Share premium account	5,641	5,538	5,641
Convertible loan	88	88	88
Merger reserve	1,012	1,012	1,012
Profit and loss account	(8,596)	(9,472)	(8,786)

	-------------------------	-------------------------	-------------------------
Total equity	445	(538)	255
	=========================	=========================	=========================

Group statement of changes in equity for the 6 months to 30 June 2009

	Share capital	Share premium account	Convertible Loan	Merger reserve	Profit and Loss account	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2008	2,296	5,538	88	1,012	(9,333)	(399)
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Share based compensation		-		-	8	8
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Transactions with owners	-	-	-	-	8	8
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Loss for the period	-	-	-	-	(147)	(147)
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Balance at 30 June 2009	2,296	5,538	88	1,012	(9,472)	(538)
	=========================	=========================	=========================	=========================	=========================	=========================

Group statement of changes in equity for the year to 31 December 2009  

	Share capital	Share premium account	Convertible loan	Merger reserve	Profit and loss	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2008	2,296	5,538	88	1,012	(9,333)	(399)
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Issue of equity	4	103	-	-	-	107
Share based compensation	-	-	-	-	16	16
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Transactions with owners	4	103	-	-	16	123
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Profit for the period	-	-	-	-	531	531
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Balance at 31 December 2009	2,300	5,641	88	1,012	(8,786)	255
	=========================	=========================	=========================	=========================	=========================	=========================

 Group statement of changes in equity for the 6 months to 30 June 2010

	Share capital	Share premium account	Convertible Loan	Merger reserve	Profit and loss account	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2009	2,300	5,641	88	1,012	(8,786)	255
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Share based compensation	-	-	-	-	8	8
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Transactions with owners	-	-	-	-	8	8
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Profit for the period	-	-	-	-	182	182
	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------	-------------------------
Balance at 30 June 2010	2,300	5,641	88	1,012	(8,596)	445
	=========================	=========================	=========================	=========================	=========================	=========================

Group cash flow statement

	Unaudited 6 months to 30 June 2010	Unaudited 6 months to 30 June 2009	Audited Year to 31 December 2009
	£'000	£'000	£'000

Cash flows from operating activities

Profit/(loss) after taxation	182	(147)	531
Adjustments for:
Fair value adjustments	-	(36)	(896)
Loss on sale of investments	11	22	-
Interest expense	96	57	154
Interest and similar income	(8)	-	-
Decrease in trade and other receivables	-	45	228
Decrease in trade payables	(33)	(10)	(149)
Profit on loan redemption	(297)	-	-
Share option charge	8	8	16
Write down to inventories to net realisable value	-	-	60
Increase in inventories	(101)	(126)	(327)

	-------------------------	-------------------------	-------------------------
Net cash flow from operating activities	(142)	(187)	(383)

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-------------------------

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Cash flows from investing activities

Purchase of investments	(52)	(45)	(329)
Proceeds from sale of investment	268	132	1,263
Interest received	7	-	-
Dividends received	1	-	-

	-------------------------	-------------------------	-------------------------
Net cash used in investing activities	224	87	934

-------------------------

-------------------------

-------------------------

Cash flows from financing activities

Interest paid	(24)	(15)	(30)
Proceeds from short-term borrowings	120	73	269
Re-payment of short term borrowings	(465)	(12)	(581)

	-------------------------	-------------------------	-------------------------
Net cash used in financing activities	(369)	46	(342)

-------------------------

-------------------------

-------------------------

Net (decrease)/increase in cash and cash equivalents	(288)	(54)	209
Cash and cash equivalents at beginning of period	(1,002)	43	(1,211)

	-------------------------	-------------------------	-------------------------
Cash and cash equivalents at end of period	(1,290)	(11)	(1,002)
	=========================	=========================	=========================

1.  Nature of operations and general information

The principal activity of the Company and its subsidiaries (together called the Group) is as an investment company investing in quoted and unquoted companies to achieve capital growth.

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 29 September 2010 and will be available on the Company's website www.energiserinvestments.co.uk.

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 2009 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 2009, 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 2009, as described in those annual financial statements.

4.  Additions and disposals of investments

The following tables show the significant additions and disposals of investments.

	Listed	Other unlisted investments	Total
	£'000	£'000	£'000
Carrying amount at 1 January 2010	228	-	228
Purchases	52	-	52
Disposals	(268)	-	(268)
Fair value adjustments	(11)	-	(11)
	-------------------------	-------------------------	-------------------------
Carrying amount at 30 June 2010	1	-	1
	=========================	=========================	=========================

	Listed	Other unlisted investments	Total
	£'000	£'000	£'000
Carrying amount at 1 January 2009	217	49	266
Additions	45	-	45
Disposals	(154)	-	(154)
Fair value adjustments	36	-	36
	-------------------------	-------------------------	-------------------------
Carrying amount at 30 June 2009	144	49	193
	=========================	=========================	=========================

	Listed	Other unlisted investments	Total
	£'000	£'000	£'000
Carrying amount at 1 January 2009	217	49	266
Additions	325	4	329
Disposals	(487)	(53)	(540)
Fair value adjustments	173	-	173
	-------------------------	-------------------------	-------------------------
Carrying amount at 31 December 2009	228	-	228
	=========================	=========================	=========================

5.  Basic and diluted profit/(loss) per share from total and continuing operations

The calculation of the basic loss per share is based on the losses attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. 

The losses and weighted average number of shares used in the calculations are set out below.

6 months to 30 June 2010

£

Profits attributable to ordinary shareholders			182,000
			--------------------------------------
Weighted average number of shares			32,037,956
			--------------------------------------

Basic earnings per share			0.57p
			====================================

6 months to 30 June 2009

			£
Profit attributable to ordinary shareholders			147,000
			--------------------------------------
Weighted average number of shares			28,309,596
			--------------------------------------
Basic loss per share			(0.52)p
			====================================

Year ended 31 December 2009

			£
Profit attributable to ordinary shareholders			531,000
			--------------------------------------
Weighted average number of shares			28,401,625
			--------------------------------------

Basic earnings per share			1.87p
			====================================

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 option exercise price and therefore the effect of including share options is anti-dilutive.

 

END

 

 

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