Half Yearly Report

RNS Number : 3837N

Energiser Investments PLC

28 September 2012

 

Energiser Investments plc

Consolidated interim financial statements for the period ended 30 June 2012

Chairman's statement

I set out below my report for the six months ended 30 June 2012 on behalf of the Board of Energiser Investments plc ("Energiser" or "the Company"). During the period ended 30 June 2012 the Group's main property investment of 20 freehold houses in Wellingborough, Northamptonshire experienced almost full occupancy levels. The Board has been reviewing a number of further opportunities in residential property which would be suitable for investment or private sale in order to enhance shareholder value. I am pleased to report that the Company is currently in detailed negotiations to acquire an additional site for nine houses, further details of which are set out below.

Results

The Group made a loss before tax of £38,000 (2011: £50,000) for the 6 months ended 30 June, 2012.  Rental income from our residential properties in Wellingborough was £74,000 (2011: £76,000) and after administrative costs of £56,000 (2011: £70,000) the operating profit was £18,000 (£2011: 6,000). Administrative costs have been reduced further and a significant part of the remaining costs are those borne by a listed company.  Finance costs amounted to £56,000 (2011: £56,000) resulting in a net loss before and after tax of £38,000 (2011: £50,000). The basic loss per share was 0.09p (2010: 0.16p). Investments have increased by £61,000 and bank loans have reduced to £1.30m (2011: £1.34m). The Group's net assets at 30 June 2012 were £302,000 (2011: £293,000) representing net asset value per share of 0.69p (2011: 0.92p). The Directors do not intend to declare a dividend.

Stephen Wicks, the Company's largest shareholder has been providing financial support to the Group for a number of years and as at 30 June 2012, the balance due to him was £nil (2011: £6,000). Shareholders will note that the Group has other borrowings but Mr Wicks has agreed to continue to provide financial support to the Group for the foreseeable future, as may be required.

Operations

The rental income during the six month period from our residential properties in Wellingborough was £74,000 (2011: £76,000) and all the properties are currently let on short term leases. The profit after letting, management fees and maintenance was £56,000 (2011: £56,000). The Group has a bank loan of £1.3m (2011: £1.34m) against these properties and the related finance cost for the six months to 30 June 2012 was £34,000 (2011: £29,000). Although the rental market is stable we are no longer seeing any increases in rental values. It continues to be the intention of the Board to sell these properties when the housing market in Northamptonshire improves sufficiently.

As part of our search for investment opportunities, the Group has recently identified a brownfield site with planning consent for nine houses in Surrey. The Group is currently in detailed negotiations for the purchase of the site for £750,000 with completion due in December 2012. It is the Board's present intention to finance this purchase by debt finance and to commence construction after completion.

Our holding in EiRx Therapeutics plc ("ETP") is 12.5% of its issued share capital and as far as the Board is aware, ETP is still intending to relist its shares on the AIM market.

In my last report to shareholders, I stated that we had invested in a project in the leisure industry. Further investment has been made into this project for a pre-production version of a prototype motor. Although much progress had been made, the motor experienced some technical problems when it was being tested for the Environmental Protection Agency certificate and these issues are currently being addressed.

Outlook

In the immediate future the Group will focus on the purchase and development of the site in Surrey and the completion of the pre-production phase of the motor project. We will continue our search for other suitable property opportunities whilst continuing to maximise the rental income from the Wellingborough estate.

Simon Bennett

27 September 2012

For further information contact:

Energiser Investments plc

Nishith Malde                    [phone]

finnCap Limited

Matthew Robinson         [phone]

Group income statement

		Unaudited 6 months to 30 June 2012	Unaudited 6 months to 30 June 2011	Audited year to 31 December 2011
	Note	£'000	£'000	£'000
Continuing operations
Change in fair value of investments	5&6	-	-	(54)
Rental income	6	74	76	106
Other income	6	-	-	64
Administrative expenses	6	(56)	(70)	(116)
Operating profit		18	6	-
Finance costs		(56)	(56)	(124)
Loss before taxation		(38)	(50)	(124)
Taxation		-	-	-
Loss for the period attributable to shareholders of the Company		(38)	(50)	(124)
Loss per share
Basic and diluted loss per share from total and continuing operations	4	(0.09)p	(0.16)p	(0.24)p

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

Group statement of financial position

		Unaudited as at 30 June 2012	Unaudited as at 30 June 2011	Audited as at 31 December 2011
	Note	£'000	£'000	£'000
ASSETS
Non-current assets
Financial assets at fair value through profit and loss	6	62	34	1
Current assets
Inventories		2,550	2,447	2,550
Trade and other receivables		17	19	14
Cash and cash equivalents		23	10	111
		2,590	2,476	2,675
Total assets		2,652	2,510	2,676
LIABILITIES
Current liabilities
Trade and other payables		303	173	278
Short term borrowings		744	743	743
		1,047	916	1,021
Non-current liabilities
Long term borrowings		1,259	1,301	1,271
Financial liabilities held at fair value through profit or loss		44	-	44
		1,303	1,301	1,315
Total liabilities		2,350	2,217	2,336
Net assets		302	293	340
EQUITY
Share capital		2,312	2,300	2,312
Share premium account		5,747	5,641	5,747
Convertible loan		88	88	88
Merger reserve		1,012	1,012	1,012
Retained earnings		(8,857)	(8,748)	(8,819)
Total equity		302	293	340

Group statement of changes in equity

		Share
	Share	premium	Convertible	Merger	Retained	Total
	capital	account	loan	reserve	earnings	equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2011	2,300	5,641	88	1,012	(8,702)	339
Total comprehensive income	-	-	-	-	(50)	(50)
Share based compensation	-	-	-	-	4	4
Total changes in equity	-	-	-	-	(46)	(46)
Balance at 30 June 2011	2,300	5,641	88	1,012	(8,748)	293
Issue of equity	12	106	-	-	-	118
Share based compensation	-	-	-	-	3	3
Transactions  with owners	12	106	-	-	3	121
Total comprehensive income	-	-	-	-	(74)	(74)
Total changes in equity	12	106	-	-	(71)	47
Balance at 31 December  2011	2,312	5,747	88	1,012	(8,819)	340
Total comprehensive income	-	-	-	-	(38)	(38)
Total changes in equity	-	-	-	-	(38)	(38)
Balance at 30 June 2012	2,312	5,747	88	1,012	(8,857)	302

Group statement of cash flows

	Unaudited 6 months to 30 June 2012	Unaudited 6 months to 30 June 2011	Audited year to 31 December 2011
	£'000	£'000	£'000
Cash flows from operating activities
Loss  before and after taxation	(38)	(50)	(124)
Adjustments for:
Change in fair value of investments	-	-	54
Interest expense	56	56	80
(Increase)/decrease in trade and other receivables	(1)	3	8
Increase in trade payables	1	3	105
Fair value loss on financial liabilities recognised in profit or loss	-	-	44
Share option charge	-	4	7
Reversal of impairment in inventories	-	-	(94)
Increase in inventories	-	-	(9)
Net cash generated from operating activities	18	16	71
Cash flows from investing activities
Purchase of investments	(61)	(34)	(54)
Used in investing activities	(61)	(34)	(54)
Cash flows from financing activities
Proceeds from borrowings	-	66	61
Re-payment of borrowings	(11)	(17)	(43)
Interest paid	(34)	(29)	(50)
Net proceeds on issue of ordinary shares	-	-	118
Net cash (used in)/generated from financing activities	(45)	20	86
Net (decrease)/ increase in cash and cash equivalents	(88)	2	103
Cash and cash equivalents at beginning of period	111	8	8
Cash and cash equivalents at end of period	23	10	111

1. Nature of operations and general information

The principal activity of the Group is as an investment company investing in quoted and unquoted companies to achieve capital growth. The Group also holds a property development acquired by way of its principal activity. The properties are held for sale with rental income arising from short term lets.

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 27 September 2012.

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 2011 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 2011, 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 2011, as described in those financial statements

4. Loss per ordinary share

The loss per ordinary share is based on the weighted average number of ordinary shares in issue during the period of 43,787,956 ordinary shares of 0.1p (2011: 32,037,956 ordinary shares of 0.1p) and the following figures:

	Unaudited 6 months to 30 June 2012	Unaudited 6 months to 30 June 2011	Audited year to 31 December 2011
Loss attributable to equity shareholders £'000	(38)	(50)	(124)
Loss per ordinary share	(0.09)p	(0.16)p	(0.24)p

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

5. Income and segmental analysis

	Unaudited 6 months to 30 June 2012	Unaudited 6 months to 30 June 2011	Audited year to 31 December 2011
	£'000	£'000	£'000
Segment result
Investment activities:
Change in fair value of investments	-	-	(54)
Administrative expenses	(38)	(50)	(109)
	(38)	(50)	(163)
Rental activities:
Rental income	74	76	106
Administrative expenses	(18)	(20)	(7)
	56	56	99
Other income:
Sale of property	-	-	(30)
Reversal of impairment of inventories	-	-	94
	-	-	64
Operating profit	18	6	-
Finance costs	(56)	(56)	(80)
Fair value adjustment on interest rate swap	-	-	(44)
Loss before tax	(38)	(50)	(124)
	Unaudited as at 30 June 2012	Unaudited as at 30 June 2011	Audited as at 31 December 2011
	£'000	£'000	£'000
Segment assets
Investment activities:
Non-current assets	62	34	1
Current assets	13	12	40
	75	46	41
Rental:
Current assets - inventories	2,550	2,447	2,550
Current assets - other	27	17	85
	2,577	2,464	2,635
Total assets	2,652	2,510	2,676
Segment liabilities
Investment activities:
Current liabilities	722	709	696
	722	709	696
Rental:
Current liabilities	325	207	325
Non-current liabilities	1,303	1,301	1,315
	1,628	1,508	1,640
Total liabilities	2,350	2,217	2,336
Total assets less total liabilities	302	293	340

The activity of both the investments and rentals arose wholly in the United Kingdom. No single customer accounts for more than 10% of revenue.

6. Investments

In accordance with IFRS 7, financial instruments are measured by level of the following fair value measurement hierarchy:

§   Level 1: quoted prices in an active market for identical assets or liabilities. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the closing price on the last day of the financial year of the Group. These instruments are included in level 1 and comprise FTSE and AIM listed investments classified as held at fair value through profit and loss.

§   Level 2: the fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The Group holds no such instruments in the current or prior year.

§   Level 3: the fair value of financial instruments that are not traded in an active market (for example, investments in unquoted companies) is determined by using valuation techniques such as earnings multiples. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

All items held at fair value through profit and loss were designated as such upon initial recognition. Movements in investments at fair value through profit or loss are summarised as follows:

	Level 1	Level 3
	Quoted equity	Unquoted financial financial	Total
	investments	instruments	investments
	£'000	£'000	£'000
Cost
At 1 January 2011	(12)	4,853	4,841
Additions	-	34	34
At 30 June 2011	(12)	4,887	4,875
Fair value losses
At 1 January 2011	12	(4,853)	(4,841)
At 30 June 2011	12	(4,853)	(4,841)
Fair value
At 30 June 2011	-	34	34
Cost
At 1 July 2011	(12)	4,887	4,875
Additions	1	20	21
At 31 December 2011	(11)	4,907	4,896
Fair value losses
At 1 July 2011	12	(4,853)	(4,841)
Increase in fair value losses	-	(54)	(54)
At 31 December 2011	12	(4,907)	(4,895)
Fair value
At 31 December 2011	1	-	1
Cost
At 1 January 2012	(12)	4,907	4,896
Additions	-	61	61
At 30 June 2012	(11)	4,968	4,957
Fair value losses
At 1 January 2012	12	(4,907)	(4,895)
At 30 June 2012	12	(4,907)	(4,895)
Fair value
At 30 June 2012	1	61	62

 

END

 

 

IR DMGZLVNGGZZM