Unaudited Interim Results

Silverwood Brands PLC
29 January 2024
 

29 January 2024

 

Silverwood Brands Plc

("Silverwood" or the "Company", together with its subsidiaries, the "Group")

 

Unaudited Interim Results for the six months ended 30 June 2023

 

Silverwood Brands plc (Aquis: SLWD), a holding company established to invest primarily in branded consumer businesses, announces the Group's unaudited interim results in respect of the six months ended 30 June 2023.

 

Chief Executive's Statement

 

During the six months ended 30 June 2023, we have introduced our various brand teams to one another and started the creation of a support platform across the Group.

 

Balmond Skincare Ltd

As mentioned in the Company's audited accounts for the year ended 31 December 2022, Balmonds enjoyed some well-placed press coverage during that period, alongside some well executed marketing activities which gave the business a welcome boost. We have not seen a repeat of this in the year to date, although similar marketing and press activities were undertaken.

 

The Balmonds' team has remained focused on the longer-term build of the business, with a number of sensible initiatives introduced in the current year, which we expect to deliver growth in the years ahead.

 

Nailberry

Nailberry has maintained high margins and enjoyed a steady growth in the six months to June 2023. The brand remains on track to meet the financial performance objectives set in the Sale and Purchase agreement. Nailberry is working hard on developing the US market and other countries.

 

We have been impressed with the smooth implementation of the changes to the Nailberry management team with, the addition of Silvain Reviron as GM. The introduction of new leadership members is never simple but, in this case, it has been implemented seamlessly.

 

Sonatas

Sonotas operates 2 brands, Steamcream and Cigarro in Japan. In the six months to June 2023, Steamcream began an exit from its 5 retail stores and shifted to a flexible retail model of pop-up events.  This medium-term strategy is designed to allow Steamcream to build its retail model without fixed-cost retail leases as the market settles into new footfall patterns post Covid-19.  

 

Gross profit in Steamcream and Cigarro improved with new buying initiatives and direct material imports.  Cigarro's margins are improving more quickly, due to growing sales volumes driving better production cost of goods.

 

Nailberry launched in Japan at the end of September 2023.  Sonotas will continue to build its portfolio of brands leveraging its platform to develop, manufacture and sell in the Japanese market.

 

New Opportunities

Silverwood is continually presented with numerous businesses opportunities to acquire or invest in. We continue to apply our strict criteria to these opportunities, which rules out the vast majority quickly. We undertake thorough due diligence on those that remain.

 

Financial Performance

The Group's unaudited interim results for the six months ended 30 June 2023, show:

 

·    Sales of £5,847,148

 

·    Gross profit of £4,440,139

 

·    Pre-tax loss of £189,232

 

Summary

The Company has been incredibly disappointed with the Lush management team's opposition to the Lush Transaction, but we have taken action to minimise the impact of this on our core brands.  

 

We are pleased with the continued tight cost control that is exercised across the business, where our main areas of concern have historically been expenditure on legal fees and interest. We have taken, and continue to take, positive steps to reduce the spend in both of these areas, allowing us to direct investment to areas which can directly impact the further growth of our business.

 

We continue to investigate new opportunities to add to our portfolio, whilst remaining focused on the long-term growth of our existing brands, whose prospects we view with confidence.

Lush

On 9 October 2023, the Company announced it was taking steps with a view to unwinding the Company's acquisition of a 19.8% stake in each of Lush Cosmetics Limited and Lush Cosmetic Warriors ("Lush", the "Lush Transaction"). The Company took this decision in light of legal advice and the significant risks and uncertainties of continuing the Company's litigation with Lush, as well as the potentially significant costs that would be incurred in fully defending the proceedings, and the associated disruption to the Company's business.

 

Since then, in accordance with the terms of the Settlement Deed announced on 10 January 2024, the Company has received an initial cash payment of £300,000 from Andrew Gerrie and Alison Hawksley as a contribution to Silverwood for some of the costs it has incurred and/or will incur in connection with the Lush Transaction and the subsequent litigation. The Company also retains an interest in any potential upside from certain ongoing litigation.

 

For the avoidance of doubt, the operational performance of Lush is not recorded in the financial statements of Silverwood.

 

The Company will announce further information regarding the process to unwind the Lush Transaction as soon as practicable.

 

 

 

 

 

 

 

 

 

 

 

Consolidated Profit and Loss and Other Comprehensive Income


For the Six Months ended 30 June 2023



 





Unaudited

Unaudited

Audited



Six Months to

30 June 2023

Period from incorporation to

31 August 2022

Year ended

31 December 2022



£

£

£


Revenue

            5,847,148

831,415

3,667,488



 




Cost of Sales

      (1,407,009)

(176,172)

(1,398,229)


Gross Profit

         4,440,139

655,243

2,269,259



 




Other operating income

-

-

30,119


Administrative Expenses

(4,225,481)

(954,346)

(2,559,358)


Deemed cost of listing

-

-

(2,665,094)


Acquisitions costs, acquisition related contingent consideration and earn outs

-

-

(2,832,049)

 

Profit/(Loss) from operations

214,658

(299,103)

(5,757,123)


 

             

 



Finance income

37,645

-

25,588


Other income

-

-

-


Finance expense

(441,535)

-

(160,085)


Fair value (losses)/gains

-

-

(120,703)


Loss before tax

(189,232)

(299,103)

6,012,323)


 

 




Tax expense

(15,508)

-

(23,403)


Loss for the period

(204,740)

(299,103)

(6,035,726)


 

 




Total comprehensive income

(204,740)

(299,103)

(6,035,726)



 



 



 

Consolidated Statement of Financial Position



As at 30 June 2023





 

Unaudited

Unaudited

Audited



Six Months to

30 June 2023

Period from incorporation to

31 August 2022

Year ended

31 December 2022



£

£

£







Non-current assets





Property, plant and equipment

110,947

26,779

45,490


Intangible assets

20,214,673

6,812,208

5,973,797


Investments

216,802,081

-

216,802,081



237,127,701

6,838,987

222,821,368







Current Assets





Inventories

1,797,117

192,159

401,132


Trade and other receivables

7,323,074

571,610

968,021


Cash and cash equivalents

3,785,124

1,761,258

2,055,143



12,905,315

2,525,027

3,424,296







Total Assets

250,033,016

9,364,014

226,245,664







Non-current liabilities





Trade and other liabilities

354,991

-

-


Loans and borrowings

12,199,699

-

13,947


Deferred tax

657,298

-

657,535



13,211,988

-

671,482







Current liabilities





Trade and other liabilities

1,487,971

232,231

5,858,054


Loans and borrowings

173,133

-

1,529,265



1,661,104

232,231

7,387,319







Total Liabilities

14,873,092

232,231

8,058,801







Net Assets

235,159,924

9,131,783

218,186,863







Equity





Share Capital

26,071,281

1,153,134

24,202,969


Share Premium

216,776,564

6,114,909

201,467,075


Shares to be issued

831,450

-

831,450


Other equity

-

2,162,840

-


Reverse takeover reserve

(4,797,432)

-

(4,797,432)


Share based payment reserve

3,257,875

-

3,257,875


Retained earnings

(6,979,814)

(299,100)

(6,775,074)


Total Equity

235,159,924

9,131,783

218,186,863







 

Consolidated Statement of Changes in Equity






For the Six Months ended 30 June 2023
















Share

Capital

Share

Premium

Shares to be issued

Reverse takeover reserve

Share based payment reserve

Retained earnings

Total

equity


£

£

£

£

£

£

£

At 1 January 2023

24,202,969

201,467,075

831,450

(4,797,432)

3,257,875

(6,775,074)

218,186,863









Comprehensive income for the period








Loss for the period

-

-

-

-

-

(204,740)

(204,740)

Total comprehensive income for the period

-

-

-

-

-

(204,740)

(204,740)









Issue of share capital

 1,868,312

15,309,489

-

-

-

-

17,177,801


 

 

 

 

 

 

 

At 30 June 2023

26,071,281

216,776,564

831,450

(4,797,432)

3,257,875

(6,979,814)

235,159,924

















 




Notes to the Consolidated Interim Statements for the six months ended 30 June 2023

 

These consolidated interim financial statements have been prepared in accordance with the Aquis rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2022, which have been prepared in accordance with UK adopted International Accounting Standards.  

The interim financial information set out above does not constitute statutory accounts as defined by Section 434 of the Companies Act 2006.  It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of the UK adopted International Accounting Standards.

These consolidated interim financial statements have not been audited or reviewed by the Company's auditor.

Post Balance Sheet Event

On 9 October 2023, the Company announced, among other things, that it was seeking to take steps to unwind the transaction announced on 12 December 2022, relating to the acquisition of a 19.8% stake in each of Lush Cosmetics Limited and Lush Cosmetic Warriors.

 

--Ends--

 

Silverwood Brands Plc

Andrew Gerrie

Paul Hodgins

 

info@silverwoodbrands.com

Peterhouse Capital Limited (Aquis Corporate Adviser)

Mark Anwyl

Narisha Ragoonanthun

Brefo Gyasi

+44 (0)20 7469 0930

 

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).

The Directors of the Company accept responsibility for the contents of this announcement.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UK 100

Latest directors dealings