Interim Results for the six months to 30 June 2021

RNS Number : 3051L

Tanfield Group PLC

10 September 2021

 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain

Tanfield Group Plc

("Tanfield", or "the Company")

Interim Results for the six-month period to 30 June 2021

Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2021. The unaudited financial information will shortly be available on the Company website at  www.tanfieldgroup.com .

Background

· Tanfield is a 49% shareholder in the equity of Snorkel International Holdings LLC ("Snorkel") following the joint venture between the Company and Xtreme Manufacturing LLC ("Xtreme") (the "Contemplated Transaction"), a company owned by Don Ahern of Ahern Rentals Inc, relating to Snorkel, in October 2013 .

· T he Snorkel investment is valued at £19.1m.  The outcome of the US and UK Proceedings referenced below could have an impact on this valuation.

· On 22 October 2019, the Company announced that it had received a Summons and Complaint, filed in Nevada (the "US Proceedings") by subsidiaries of Xtreme, relating to the Contemplated Transaction .

· On 24 October 2019, the Company announced it had become necessary to issue and serve a claim in the English High Court against Ward Hadaway (the "UK Proceedings"), the solicitor acting for the Company at the time of the Contemplated Transaction, in order to fully protect the Company's rights pending the outcome of the US Proceedings. 

· The Company's operating loss in H1 2021 reduced to £187k (H1 2020: £333k) as a consequence of lower legal fees during the period, with the retained loss for the period reducing to £268k (H1 2020: £369k).

· As announced on 3 June 2021, the Company continues to receive the support of its Shareholders via loan note subscriptions in order to provide the necessary funding for the ongoing US and UK Proceedings and other day to day costs.

Overview of investments

During the first 6 months of 2021, Snorkel appears to be recovering from the impact of the global COVID-19 pandemic which impacted its ability to operate as normal and required many of its global facilities to close for substantial periods.

As the recovery from the pandemic continues, Snorkel has seen sales in the first 6 months of 2021 increase to US$71.7m, up from US$60.2m for the same period in 2020.  More recently, as announced on 24 August 2021, Snorkel saw a 140% increase in sales for the second quarter of 2021, achieving sales of US$40.3m compared to US$16.8m for the same period in 2020. 

Also as announced on 24 August 2021, the Board remain of the opinion that gross profit margins generally do not appear to have been in line with the industry averages.  Accordingly, steps to investigate the historic margins, which includes ensuring all related party transactions have taken place at an arm's length basis, have commenced and are ongoing.

The Board confirm that both the US and UK Proceedings are continuing to progress and that the Board believes a positive outcome to either/both proceedings is possible.  So far as it is necessary, the Company will continue to vigorously defend and advance its position in both proceedings, whilst continuing to seek advice. 

Further updates will be provided to Shareholders as and when appropriate.

For further information:

Tanfield Group Plc     020 7220 1666

Daryn Robinson   

WH Ireland Limited - Nominated Advisor / Broker

James Joyce                                                                                     020 7220 1666

 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2021
					Six months to 30 Jun 21 (unaudited)				Six months to 30 Jun 20 (unaudited)			Year to  31 Dec 20  (audited)
					£000's				£000's			£000's
Revenue						-			-		-
Staff costs						(51)			(37)		(83)
Other operating income						9			9		18
Other operating expenses						(145)			(305)		(532)
Loss from operations						(187)			(333)		(597)
Finance expense						(81)			(36)		(100)
Finance income						-			-		-
Net finance expense						(81)			(36)		(100)
Loss from operations before tax						(268)			(369)		(697)
Taxation						-			-		-
Loss & total comprehensive income for the period attributable to equity shareholders						(268)			(369)		(697)
Loss per share from operations
Basic and diluted (p)						(0.16)			(0.23)		(0.43)

 

BALANCE SHEET
AS AT 30 JUNE 2021
					30 Jun 21 (unaudited)		30 Jun 20 (unaudited)		31 Dec 20 (audited)
					£000's		£000's		£000's
Non current assets
Non current Investments					19,100		19,100		19,100
					19,100		19,100		19,100
Current assets
Trade and other receivables					36		28		24
Cash and cash equivalents					739		109		524
					775		137		548
Total assets					19,875		19,237		19,648
Current liabilities
Trade and other payables					54		59		90
					54		59		90
Non-current liabilities
Other payables					1,631		392		1,100
					1,631		392		1,100
Total liabilities					1,685		451		1,190
Equity
Share capital					8,145		8,145		8,145
Share premium					17,336		17,336		17,336
Share option reserve					331		331		331
Special reserve					66,837		66,837		66,837
Merger reserve					1,534		1,534		1,534
Retained earnings					(75,993)		(75,397)		(75,725)
Total equity					18,190		18,786		18,458
Total equity and total liabilities					19,875		19,237		19,648

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 Six months to 30 June 2021 (unaudited) At 1 January 2021 8,145 17,336 331 1,534 66,837 (75,725) 18,458 Comprehensive income Loss for the period - - - - - (268) (268) Total comprehensive income for the period - - - - - (268) (268) At 30 June 2021 8,145 17,336 331 1,534 66,837 (75,993) 18,190 Six months to 30 June 2020 (unaudited) At 1 January 2020 8,145 17,336 331 1,534 66,837 (75,028) 19,155 Comprehensive income Loss for the period - - - - - (369) (369) Total comprehensive income for the period - - - - - (369) (369) At 30 June 2020 8,145 17,336 331 1,534 66,837 (75,397) 18,786 Year to December 2020 (audited) At 1 January 2020 8,145 17,336 331 1,534 66,837 (75,028) 19,155 Comprehensive income Loss for the year - - - - - (697) (697) Total comprehensive income for the year - - - - - (697) (697) At 31 December 2020 8,145 17,336 331 1,534 66,837 (75,725) 18,458

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2020
			Six months to 30 Jun 21 (unaudited)	Six months to 30 Jun 20 (unaudited)		Year to  31 Dec 20  (audited)
			£000's	£000's		£000's
Loss from operations			(268)	(369)		(697)
Adjustment for:
Finance costs			81	36		100
Changes in operating assets and liabilities / working capital:
Increase in receivables			(12)	(16)		(1)
Decrease			(36)	(34)		(14)
Net cash used in operating activities			(235)	(383)		(612)
Cash flow from financing activities
Proceeds from borrowings			450	356		1,000
Net cash generated by financing activities			450	356		1,000
Net increase/(decrease) in cash and cash equivalents			215	(27)		388
Cash and cash equivalents at the start of period			524	136		136
Cash and cash equivalents at the end of the period			739	109		524

 

1  Basis of preparation The financial statements for the year ended 31 December 2020 were prepared in accordance with International Financial Reporting Standards and IFRS interpretations Committee interpretations as adopted by the European Union and with IFRS and their Interpretations issued by the IASB. On 31 December 2020, IFRS as adopted by the European Union at that date was brought into UK law and became UK-adopted international accounting standards, with future changes being subject to endorsement by the UK Endorsement Board. The Group transitioned to UK-adopted international accounting standards in its consolidated financial statements on 1 January 2021. There was no impact or changes in accounting policies from the transition and the Group will also continue to comply with IFRS and their interpretations issued by the IASB. The Interim Report of the Company for the six months ended 30 June 2021 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 2020 which is available on request from the Company's registered office, c/o Weightmans LLP, 1 St James' Gate, Newcastle upon Tyne, NE99 1YQ or can be downloaded from the corporate website www.tanfieldgroup.com. 2  Accounting Policies Impact of accounting standards to be applied in future periods There are a number of standards and interpretations which have been issued by the International Accounting Standards Board that are effective for periods beginning subsequent to 31 December 2021 that the Group has decided not to adopt early. The Group does not believe these standards and interpretations will have a material impact on the financial statements once adopted.

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 21

to 30 Jun 20

31 Dec 20

000's

000's

000's

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

162,907

162,907

162,907

Effect of dilutive potential ordinary shares from share options

-

-

-

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

162,907

162,907

162,907

Loss

Six months

Six months

Year to

to 30 Jun 21

to 30 Jun 20

31 Dec 20

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

(268)

(369)

(697)

Potential dilutive ordinary shares from share options

-

-

-

Loss for the purposes of diluted earnings per share

(268)

(369)

(697)

Loss per share from operations

Basic and diluted (p)

(0.16)

(0.23)

(0.43)

 

END

 

 

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