Interim Results

RNS Number : 0797U

Tanfield Group PLC

27 July 2015

 

The Tanfield Group Plc

("Tanfield", or "the Company")

  Interim Results for the six-month period to 30 June 2015

Tanfield Group Plc, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2015. The unaudited financial statements are available on the Company website at www.tanfieldgroup.com.

Background

The Company is currently defined as an investing company that has two passive investments. This status resulted from the disposal of Smith Electric Vehicles in 2010 and the disposal of Snorkel Europe Limited in October 2013.  Tanfield Group Plc currently owns 5.76% of Smith Electric Vehicles Corp. ("Smith") and 49% of Snorkel International Holdings LLC ("Snorkel").

The strategy of the Company in relation to these investments is to return as much as possible of any realised value to shareholders as events occur and circumstances allow, subject to compliance with any legal requirements associated with such distributions.

Summary

·     Aggregate current estimated value of holdings £46.9m ($73.1m), equivalent to approximately 33p per share, a 61% premium to the current market value of the Company*.

·     Aggregate valuation comprises;

o  Snorkel holding £38.5m ($60.1m) equivalent to approximately 27p per share. The holding value of $60.1m has been converted at the current exchange rate and compares to a sterling holding value of £36.3m on the balance sheet based on the exchange rate at the date of receipt of the holding.

o  Smith estimated holding value of  £6.9m ($10.7m) based on the the most recent valuation at which Smith received funds , as well as £1.5m ($2.3m) in the joint venture, totalling £8.4m ($13.0) equivalent to approximately 6p per share  The book value of the Smith holding on the balance sheet is £4.8m

·     The aggregated  book value of investments in the balance sheet is £41.1m   equivalent to a value per share of 28.5 p

·     The net book value of the Company is £39.6m equivalent to 27.5p per share

*based on the closing mid-price of the Company's shares on 24 July 2015

Overview of investments

Snorkel continues to develop its business as announced in the Company's final results announcement of 22 June 2015 with an increasing demand for its products in a competitive market.  Smith are making progress towards achieving their plans to publicly list the business and raising funds to allow for the execution of its strategy.

For further information:

Tanfield Group Plc

Roy Stanley - Non-executive Director                                                   

0845 155 7755

WH Ireland Limited

James Joyce / James Bavister

0207 220 1666

Peterhouse Corporate Finance

Duncan Vasey / Peter Greensmith          

0207 220 9797

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2015
					Six months to 30 Jun 15 (unaudited)				Six months to 30 Jun 14 (unaudited)			Year to  31 Dec 14  (audited)
					£000's				£000's			£000's
Revenue						-			-		-
Staff costs						(90)			(56)		(111)
Other operating income						15			9		18
Other operating expenses						(100)			(82)		(296)
Loss from operations						(175)			(129)		(389)
Finance expense						(34)			(139)		(91)
Finance income						-			7		624
Net finance (expense) income						(34)			(132)		533
Profit/(loss) from operations before tax						(209)			(261)		144
Taxation						-			-		-
(Loss)/profit & total comprehensive income for the period attributable to equity shareholders						(209)			(261)		144
(Loss)/earnings per share
Earnings/(loss) per share from operations
Basic (p)						(0.15)			(0.18)		0.1
Diluted (p)						(0.15)			(0.18)		0.1

BALANCE SHEET
AS AT 30 JUNE 2015
					30 Jun 15 (unaudited)		30 Jun 14 (unaudited)		31 Dec 13 (audited)
					£000's		£000's		£000's
Non current assets
Non current Investments					41,053		37,563		41,053
					41,053		37,563		41,053
Current assets
Trade and other receivables					154		2,574		131
Deferred consideration					-		341		-
Cash and cash equivalents					157		257		369
					311		3,172		500
Total assets					41,364		40,735		41,553
Current liabilities
Trade and other payables					119		1,581		135
					119		1,581		135
Non-current liabilities
Other payables					1,601		-		1,565
					1,601		-		1,565
Total liabilities					1,720		1,581		1,700
Equity
Share capital					7,187		7,086		7,187
Share premium					16,455		16,262		16,455
Share option reserve					845		862		845
Special reserve					66,837		66,837		66,837
Merger reserve					1,534		1,534		1,534
Retained earnings					(53,214)		(53,427)		(53,005)
Total equity					39,644		39,154		39,853
Total equity and total liabilities					41,364		40,735		41,553

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 For the 6 month period ended 30 June 2015 At 1 January 2015 7,187 16,455 845 1,534 66,837 (53,005) 39,853 Comprehensive income Loss for the period - - - - - (209) (209) Total comprehensive income for the period - - - - - (209) (209) At 30 June 2015 7,187 16,455 845 1,534 66,837 (53,214) 39,644 For the 6 month period ended 30 June 2014 At 1 January 2014 6,975 16,262 1,904 1,534 66,837 (54,208) 39,304 Comprehensive income Loss for the period - - - - - (261) (261) Total comprehensive income for the period - - - - - (261) (261) Transactions with owners in their capacity as owners:-    Share options exercised 111 - (1,042) - - 1,042 111 At 30 June 2014 7,086 16,262 862 1,534 66,837 (53,427) 39,154 For the year ended 31 December 2014 At 1 January 2014 6,975 16,262 1,904 1,534 66,837 (54,208) 39,304 Comprehensive income Profit for the year - - - - - 144 144 Total comprehensive income for the year - - - - - 144 144 Transactions with owners in their capacity as owners:-    Issuance of new shares 212 193 - - - - 405    Share based payments - - (1,059) - - 1,059 - At 31 December 2014 7,187 16,455 845 1,534 66,837 (53,005) 39,853

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2015
			Six months to 30 Jun 15 (unaudited)	Six months to 30 Jun 14 (unaudited)		Year to  31 Dec 14  (audited)
			£000's	£000's		£000's
Loss before interest and taxation			(175)	(129)		(389)
(Loss)/profit on current asset currency fluctuations			-	(95)		55
Operating cash flows before movements in working capital			(175)	(224)		(334)
(Increase)/decrease in receivables			(28)	337		109
Increase/(decrease) in payables			25	(305)		(186)
Net cash used in operations			(178)	(192)		(411)
Interest paid			(34)	(44)		-
Net cash used in operating activities			(212)	(236)		(411)
Cash flow from Investing Activities
Interest received			-	7		-
Net cash from investing activities			-	7		-
Cash flow from financing activities
Proceeds from issuance of ordinary shares net of costs			-	111		405
Net cash from financing activities			-	111		405
Net decrease in cash and cash equivalents			(212)	(118)		(6)
Cash and cash equivalents at the start of period			369	375		375
Cash and cash equivalents at the end of the period			157	257		369

1  Basis of preparation The Interim Report of the Company for the six months ended 30 June 2015 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 2014 which is available on request from the Company's registered office, Sandgate House, 102 Quayside, Newcastle upon Tyne NE1 3DX or can be downloaded from the corporate website www.tanfieldgroup.com. 2  Accounting Policies The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2014, as described in those financial statements.  In particular, the accounts have been prepared on a going concern basis, and as set out on page 17 of those financial statements.
	3  Earnings/(loss) per share
The calculation of the basic and diluted (loss)/earnings per share is based on the following data:
Number of shares						Six months					Six months		Year to
						to 30 Jun 15					to 30 Jun 14		31 Dec 14
						000's					000's		000's
Weighted average number of ordinary shares for the purposes of basic earnings per share									143,741		141,427		141,755
Effect of dilutive potential ordinary shares from share options									635		720		584
Weighted average number of ordinary shares for the purposes of diluted earnings per share									144,376		142,147		142,339
Earnings									Six months		Six months		Year to
									to 30 Jun 15		to 30 Jun 14		31 Dec 14
From operations									£000's		£000's		£000's
Earnings/(loss) for the purposes of basic earnings per share being net profit attributable to owners of the parent									(209)		(261)		144
Potential dilutive ordinary shares from share options									-	-			-
Earnings/(loss) for the purposes of diluted earnings per share									(209)	(261)			144
Earnings/(loss) per share from operations
Basic (p)									(0.15)		(0.18)		0.10
Diluted (p) a									(0.15)		(0.18)		0.10
aIAS33 defines dilution as a reduction in earnings per share or an increase in loss per share resulting from the assumption that options are exercised. As the potential dilutive ordinary shares from share options reduce the loss per share these shares are omitted from the dilutive loss per share calculation in June 2014 and June 2015.

 

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