Interim Results

RNS Number : 4968K

Tanfield Group PLC

22 September 2016

 



Tanfield Group Plc

("Tanfield", or "the Company")

Interim Results for the six-month period to 30 June 2016

Tanfield Group Plc, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2016. 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 49% of Snorkel International Holdings LLC ("Snorkel") and 5.76% of Smith Electric Vehicles Corp. ("Smith").

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

·     Further sales growth achieved by Snorkel in the first six months of the year, up by more than 25% compared to H1 2015.

·     Smith Electric continues to seek funding.

·     Balance Sheet investment values:

o  Snorkel £36.3m ($60.1m) based on the exchange rate at the date of receipt of the holding equivalent to 23.6p per share.  This compares to £46m based on the current exchange rate, equivalent to 29.9p per share.

o  Smith Electric continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015. 

·     The net book value of the Company is £36.4m equivalent to 23.7p per share.

Overview of investments

During the first six months of 2016, Snorkel achieved sales growth in excess of 25% compared to the same period in 2015 which resulted in $70m of sales for the period. The Board feels encouraged by the additional sales which have been achieved and is not aware of any reason why, with the ongoing efforts to further improve the product offering and customer experience, along with the continued commitment to Snorkel by the 51% beneficial owner, this trend should not continue.

As announced in the 2015 final results on 27 June 2016, the investment in Smith Electric was impaired to nil due to the uncertainty around its future and the level of funding it required. The situation continues to be monitored and should some significant progress be made then an update will be provided.

For further information:

Tanfield Group Plc

Daryn Robinson                                                                0700 349 7489

WH Ireland Limited - Nominated Advisor

James Joyce / Nick Prowting                                      020 7220 1666

Peterhouse Corporate Finance - Broker

Peter Greensmith / Duncan Vasey                           020 7220 9797

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2016
					Six months to 30 Jun 16 (unaudited)				Six months to 30 Jun 15 (unaudited)			Year to  31 Dec 15  (audited)
					£000's				£000's			£000's
Revenue						-			-		-
Staff costs						(44)			(90)		618
Other operating income						14			15		27
Other operating expenses						(79)			(100)		(268)
(Loss)/profit from operations before impairments						(109)			(175)		377
Impairment of investments						-			-		(4,770)
Loss from operations after impairments						(109)			(175)		(4,393)
Finance expense						(8)			(34)		(54)
Finance income						-			-		1
Net finance expense						(8)			(34)		(53)
Loss from operations before tax						(117)			(209)		(4,446)
Taxation						-			-		-
Loss & total comprehensive income for the period attributable to equity shareholders						(117)			(209)		(4,446)
Loss per share
Earnings/(loss) per share from operations
Basic and diluted (p)						(0.09)			(0.15)		(3.1)

BALANCE SHEET
AS AT 30 JUNE 2016
					30 Jun 16 (unaudited)		30 Jun 15 (unaudited)		31 Dec 15 (audited)
					£000's		£000's		£000's
Non current assets
Non current Investments					36,283		41,053		36,283
					36,283		41,053		36,283
Current assets
Trade and other receivables					102		154		98
Cash and cash equivalents					364		157		94
					466		311		192
Total assets					36,749		41,364		36,475
Current liabilities
Trade and other payables					100		119		110
					100		119		110
Non-current liabilities
Other payables					262		1,601		254
					262		1,601		254
Total liabilities					362		1,720		364
Equity
Share capital					7,686		7,187		7,546
Share premium					17,053		16,455		16,800
Share option reserve					461		845		461
Special reserve					66,837		66,837		66,837
Merger reserve					1,534		1,534		1,534
Retained earnings					(57,184)		(53,214)		(57,067)
Total equity					36,387		39,644		36,111
Total equity and total liabilities					36,749		41,364		36,475

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 2016 At 1 January 2016 7,546 16,800 461 1,534 66,837 (57,067) 36,111 Comprehensive income Loss for the period - - - - - (117) (117) Total comprehensive income for the period - - - - - (117) (117) Transactions with owners in their capacity as owners:-    Issuance of new shares 140 253 - - - - 393 At 30 June 2016 7,686 17,053 461 1,534 66,837 (57,184) 36,387 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 year ended 31 December 2015 At 1 January 2015 7,187 16,455 845 1,534 66,837 (53,005) 39,853 Comprehensive income Profit for the year - - - - - (4,446) (4,446) Total comprehensive income for the year - - - - - (4,446) (4,446) Transactions with owners in their capacity as owners:-    Issuance of new shares 359 345 - - - - 704    Share based payments - - (384) - - 384 - At 31 December 2015 7,546 16,800 461 1,534 66,837 (57,067) 36,111

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2016
			Six months to 30 Jun 16 (unaudited)	Six months to 30 Jun 15 (unaudited)		Year to  31 Dec 15  (audited)
			£000's	£000's		£000's
Loss before interest and taxation			(109)	(175)		(4,393)
Loss on impairment of investments			-	-		4,770
Operating cash flows before movements in working capital			(109)	(175)		(377)
(Increase)/decrease in receivables			(12)	(28)		(25)
Increase/(decrease) in payables			(1)	25		(1,331)
Net cash used in operations			(122)	(178)		(979)
Interest paid			-	(34)		-
Net cash used in operating activities			(122)	(212)		(979)
Cash flow from Investing Activities
Interest received			-	-		-
Net cash from investing activities			-	-		-
Cash flow from financing activities
Proceeds from issuance of ordinary shares net of costs			392	-		704
Net cash from financing activities			-	-		704
Net increase/(decrease) in cash and cash equivalents			270	(212)		(275)
Cash and cash equivalents at the start of period			94	369		369
Cash and cash equivalents at the end of the period			364	157		94

1  Basis of preparation The Interim Report of the Company for the six months ended 30 June 2016 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 2015 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 2015, as described in those financial statements.  In particular, the accounts have been prepared on a going concern basis, and as set out on page 16 of those financial statements.

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 16	to 30 Jun 15	31 Dec 15
		000's	000's	000's
Weighted average number of ordinary shares for the purposes of basic earnings per share		152,464	143,741	144,823
Effect of dilutive potential ordinary shares from share options		149	635	171
Weighted average number of ordinary shares for the purposes of diluted earnings per share		12,613	144,376	144,994
Loss		Six months	Six months	Year to
		to 30 Jun 16	to 30 Jun 15	31 Dec 15
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		(139)	(209)	(4,446)
Potential dilutive ordinary shares from share options		-	-	-
Loss for the purposes of diluted earnings per share		(139)	(209)	(4,446)
Loss per share from operations
Basic (p)		(0.09)	(0.15)	(3.1)
Diluted (p) a		(0.09)	(0.15)	(3.1)
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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