Final Results

RNS Number : 3320O

Nexus Infrastructure PLC

31 January 2023

 

31 January 2023

Nexus Infrastructure plc ("Nexus" or the "Group")

Full year results for the year ended 30 September 2022

Strategic disposal to complete in February  

Core business Tamdown well positioned with strong order book   

Mike Morris, Chief Executive Officer of Nexus, a leading provider of sustainable infrastructure, commented:

"Following last year's strategic review, I am delighted that we have successfully crystalised value for all shareholders and stakeholders through the sale of TriConnex and eSmart Networks. This transaction has been structured to leave our Tamdown business well capitalised, with a strong executive leadership team who will continue to successfully drive its transition plans.

"Tamdown is in a resilient position for the year ahead, with high customer retention and repeat business. It has a strong order book of £95.5m which provides good visibility of revenue to help navigate any macroeconomic headwinds. I remain deeply committed to Nexus and look forward to supporting the new team as they take the business forward."

Total Group performance, including TriConnex and eSmart Networks, for the year ended 31 September 2022:

· Total revenue growth of 26.6% to £173.4m (2021: £137.0m)

· Total adjusted operating profit up 39.7% to £4.0m (2021: £2.9m), a significant improved on the prior year

· Operating loss of continuing operations of £0.3m (2021: £1.3m)

· Balance sheet strength maintained with an increase in net cash to £24.2m (2021: £18.1m)

· Order book remains strong at £316.1m (2021: £287.8m) providing good revenue visibility

· Net assets continue to grow to £34.1m (2021: £32.1m) 

Inherent value of the Group crystallised:

·     Since the year end shareholders have agreed to the sale of TriConnex and eSmart Networks for a consideration of £77.7m, realising the inherent value of these businesses and ensuring Tamdown is well capitalised for the future.

·     Sale price represents a multiple of c18x operating profit for TriConnex and eSmart Networks.

·     A substantial proportion of the net proceeds of the sale will be returned to shareholders by way of a tender offer in early 2023. Given that the tender offer process will commence by the end of February, no final dividend is being recommended by the Board for the year ended 30 September 2022.  

·   Future dividend policy will reflect the current market alongside the cash generative nature of the Tamdown business.  

Transitional year for Tamdown

·     Significant revenue growth of 26.1% to £98.4m (2021: £78.0m) due to high levels of activity on site

·     Two-year turnaround programme on track with improvement in operating profits (excluding exceptional items) of £2.9m to £2.3m (2021: loss £0.6m)

·     Order book increased by 12.0% to £95.5m (2021: £85.3m) following a successful year winning contracts, providing good visibility for the year ahead

Outlook

·     Well capitalised for the future with approximately £10m of the net proceeds of the disposal to be retained by Nexus enabling the business to focus on high-quality contracts and improve operating margins towards those achieved historically achieved.

·     Tamdown has an established market position, with a reputation for providing quality services.

·     A solid platform to deliver on its growth prospects for 2023 and beyond.

Enquiries

Nexus Infrastructure plc	Tel: [phone]
Michael Morris, Chief Executive Officer
Alan Martin, Chief Financial Officer
Numis Securities Limited	Tel: [phone]
(Financial Adviser, Nominated Adviser & Broker)
Oliver Hardy (Nomad)
Heraclis Economides
Hannah Boros
Camarco	Tel: [phone] / 4981
(Financial Public Relations)
Ginny Pulbrook
Rosie Driscoll

Notes to Editors

Civil Engineering - Tamdown, our civil engineering business, provides a range of civil engineering and infrastructure services to the UK housebuilding and commercial sectors. Services include earthworks, highways, substructures and basements and installing sustainable drainage systems. It has an established market-leading position having been in operation for over 40 years.

Chairman's statement

I was appointed Non-Executive Chairman at the beginning of 2022, and I am pleased to report that the Group has delivered a record year of revenue (inclusive of discontinued operations) in the financial year to 30 September 2022. Since the year end, shareholders have agreed to the sale of TriConnex and eSmart Networks. The transaction, which is expected to complete in early February 2023, crystallises the inherent value of these businesses and ensures Tamdown is well capitalised for the future.  It is anticipated that the majority of the proceeds will be returned to Shareholders in early 2023, with the remainder of the proceeds to be kept within Nexus for working capital purposes. The financial statements have been formatted to comply with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, which will result in the consolidated accounts appearing very different to prior years.

Overview of the year

Throughout the year, the Group consisted of the following businesses: TriConnex, which designs, installs and connects multi-utility networks to properties on new residential developments; eSmart Networks, which focuses on electric vehicle charging infrastructure, energy transition solutions and renewable infrastructure; and Tamdown, a leading provider of civil engineering and infrastructure construction services.

Revenues in all businesses have grown throughout the year, with Total revenue (inclusive of discontinued operations) achieving a record of £173.4m, a year-on-year increase of 26.6% (2021: £137.0m). Tamdown, which is the continuing operations of the Group, recorded a revenue growth of 26.1% to £98.4m (2021: £78.0m) due to high levels of activity on site. TriConnex continued to grow and recorded a record revenue of £55.7m (2021: £50.7m) with an increase in the number of active contracts and activity levels on site remaining high. eSmart Networks continued with its high level of revenue growth, with revenue totalling £19.3m (2021: £9.0m) an increase of 115%, though growth was limited in H2 due to customer delays and longer supplier lead times relating to the manufacture and delivery of specialised equipment. 

The Group recorded a significantly improved operating result before exceptional items (inclusive of discontinued operations) with an operating profit of £4.0m (2021: £2.9m). TriConnex and Tamdown both improved their operating profits following increased revenue. eSmart Networks incurred a loss for the year with gross margin impacted by one low margin contract and a significant increase in overheads as the business continues to scale up to support future growth. The total operating result after exceptional items (inclusive of discontinued operations) totalled £4.0m (2021: £4.2m), with the prior year including exceptional profit of £1.3m relating to the disposal of Tamdown's former office.

The profit for the year attributable to equity holders of the parent company equated to £2.7m (2021: £3.0m). The basic earnings per share from total operations was 6.0p per share (2021: 6.6p per share). The basic loss per share from continuing operations was 2.2p per share (2021: 4.0p per share).

The order book for each of the Group's businesses remains strong. The total order book (inclusive of the discontinued operations) was £316.1m (2021: 287.8m), up 9.8%. Tamdown had a successful year winning contracts and grew its order book by 12.0% to £95.5m (2021: £85.3m) even with the acceleration of delivery on site. The TriConnex order book grew by 4.4% to £197.4m (2021: £189.0m), and eSmart Networks grew by 72% to £23.2m (2021: £13.5m) with increased demand for its services for electric vehicle charging infrastructure, industrial electrification and renewable energy infrastructure.

The Group's balance sheet remains strong, with a continued high net cash, inclusive of discontinued operations, of £24.2m (2021: £18.1m) and with net assets improving by 6% to £34.1m (2021: £32.1m).

Returns to shareholders

As a listed company, one of our primary objectives is to deliver value to shareholders. Such value would normally be delivered by way of dividends from earned trading profits. As such, the Board declared an interim dividend of 1.0p per share, a 66% increase on the prior year (2021: 0.6p per share) based upon the expected trading results for the year.

The Board is not recommending the payment of a final dividend for the year ended 30 September 2022 as, since the year end, shareholders have approved the sale of TriConnex and eSmart Networks for a consideration of £77.7m, with the expectation that a substantial proportion of the net proceeds will be returned to shareholders in early 2023. The transaction will result in a profit on sale of approximately £72m and the Board is proposing to distribute approximately £65m by way of a tender offer and will write to shareholders in due course setting out the terms and the timetable of the capital return. Approximately £10m of the net proceeds of the disposal are to be retained by Nexus to strengthen its balance sheet and ensure Tamdown has adequate working capital. To the extent that surplus capital arises in the future, it is the Board's intention that such capital will be distributed to shareholders.

The Board believes that Tamdown can continue to improve operating profit margins and generate positive free cash in 2023 and thereafter support a progressive dividend policy.

Board and governance

As announced in August 2021, Geoff French retired as Non-Executive Chairman on 31 December 2021 following two terms as a Director and Non-Executive Chairman. In line with the announcement, I was appointed as Non-Executive Chairman from 1 January 2022, and Chair of the Nomination Committee, whilst also continuing to serve on the Company's Audit and Remuneration Committees. The roles of Senior Non-Executive Director and Chair of the Remuneration Committee were taken up by Ffion Griffith with effect from 1 January 2022.

Clare Lacey was appointed as a Non-Executive Director on 14 January 2022. Clare is a Chartered Accountant with nearly 20 years' experience, focused on the infrastructure and renewable energy sectors. Clare was a founding partner of QMPF LLP, an Edinburgh based infrastructure and energy advisory business, established in 2012 following a management buy-out of Quayle Munro in 2012 and grew the business over its first ten years. Clare is a Non-Executive Director of infrastructure and education related companies.

The Board consists of six members, including four Non- Executive Directors and two Executive Directors. In line with the QCA Corporate Governance Code (the "QCA Code"), the Board has reviewed the independence of the Non-Executive Directors and considers all the Non- Executive Directors to be independent.

Upon completion of the sale of TriConnex and eSmart Networks, Mike Morris, CEO, and Alan Martin, CFO, will step-down from their current roles at Nexus to lead TriConnex and eSmart Networks under their new ownership. Charles Sweeney will be appointed to the Nexus Board as CEO and Dawn Hillman will be appointed to the Nexus Board as CFO to lead the remaining Nexus Group. Charles Sweeney is currently the COO of Nexus and Dawn Hillman is currently Financial Director of TriConnex and Nexus Company Secretary. Both individuals have deep knowledge and experience of Tamdown and Nexus, having worked within the Group for a collective total of 43 years. Mike Morris will remain on the Nexus Board as a Non-Executive Director following completion of the sale and will remain the largest shareholder. 

Mike has successfully led the Group since 1999 and through his vision and entrepreneurship has grown the Group to the infrastructure business that it is today. Alan joined the Group in 2015 and can include leading the IPO in 2017 as one of his many successes. I and the Board would like to record our sincere gratitude to both Mike and Alan for their contributions to the business over many years. I look forward to working with Mike in his new capacity as a non-executive director.

People

A primary driver of the Group's success is the team of highly skilled, driven and loyal employees across the businesses. Nexus places great importance on engaging with and developing its employees and providing a platform for personal growth and successful career development. On behalf of the Board, I would like to congratulate and thank them for their continued hard work and dedication throughout the year.

Stakeholder engagement

The Board recognises the importance of stakeholder engagement to the long-term success and sustainability of our business. The Group is committed to developing effective dialogue and relationships with all stakeholder groups and the Board continually develops our business using learnings from these interactions.

Sustainability

At the heart of our purpose, Building Bright Futures, is a commitment to sustainability. I'm proud of what Nexus and its people achieved this year. We maintained our focus on health and safety and continued our work on developing and engaging our workforce, especially through the 'My Bright Future' performance development approach, which was expanded this year.

To aid our approach to reducing energy consumption across our sites and offices, improvement initiatives included working with key suppliers to reduce fuel wastage, reduce transport distances and monitor driver performance, and energy-saving initiatives in our head office which achieved a BREEAM 'Very Good' rating.

We are developing a Group wide approach to sustainability. This is important to the Board because it supports our overall growth strategy and enables the energy transition by delivering sustainable infrastructure.

Outlook

Trading in the first quarter of FY23 is in line with the Board's expectations. The two-year turnaround plan for Tamdown is well progressed with operational benefits coming through. Tamdown is continuing to see positive demand for its services despite macroeconomic headwinds increasing and new build housing market softness. Despite the headwinds, the fundamental market growth drivers for Tamdown are positive since the housing market has been in a long-term position of structural undersupply as the number of new houses built has failed to keep pace with the rate of household formation.

The sale of TriConnex and eSmart Networks crystallises the inherent value of these businesses and ensures Tamdown is well capitalised and able to progress with its two-year turnaround plan focusing on high quality contracts and improving operating margins.

Richard Kilner

Non-Executive Chairman

Executive Review

We are pleased to confirm that the Group's total revenue (inclusive of discontinued operations) has increased by 26.6% to £173.4m compared to the prior year (2021: £137.0m). All the Group's businesses grew in the year, with growth for Tamdown and TriConnex driven by high levels of activity on sites, and growth for eSmart Networks driven by the fulfilment of an increasing number of customer awards in both electric vehicle infrastructure and industrial and commercial connections.

The Group performed well in the first half of the year with revenues increasing against the revenue recorded in the second half of the previous financial year, and with revenue growth continuing into the second half of the year. Tamdown, the continuing operation of the Group, had a very positive year with revenue up 26.1% to £98.4m (2021: £78.0m) due to an increased number of projects and high levels of activity on sites. TriConnex, a discontinued operation, recorded strong revenue throughout the year due to high levels of activity on site, achieving a record revenue of £55.7m and growth of 9.7% (2021: £50.7m). eSmart Networks, a discontinued operation, also had a very strong year with revenue increasing by 114.7% to £19.3m (2021: £9.0m), with revenue growth being recorded in all of the sectors the business is addressing. The revenue growth for eSmart Networks, even though significant, was restricted due to customer delays and longer supplier lead times in the manufacture and delivery of specialised electrical equipment utilised on projects.

The profitability of the Group, before exceptional items, has improved significantly due to the revenue growth and despite additional investment in the resources of eSmart Networks to support its ongoing growth. Tamdown made progress with the gross margin improving in the year as old contracts, which had previously been impacted by delay and unproductive working periods principally due to Covid-19, were completed and cease to be a drag on profitability. The trading and profitability of TriConnex has been strong throughout the year, with demand for multi utility connection services remaining high, the business continuing to deliver good margins and the continual diversification and enhancement to its service offering to fulfil the needs of its customer base. eSmart Networks made excellent progress in the year, with significant growth in revenue from a widening customer base. eSmart Networks' gross margins have been in line with expectations except for one low margin contract, completed in H1, which depressed the gross margin for the year. Delays by customers and in the supply of some equipment resulted in lower than anticipated revenue and lower gross profit to cover the increase in resources required to meet the growth in revenue. The operating environment for all the businesses is characterised by increased input cost inflation, but the businesses are committed to taking the necessary mitigating actions to protect and maintain margins. 

The Group's order book, inclusive of the discontinued operations, remains high and has increased by 9.8% year-on-year to £316.1m (2021: £287.8m), providing good visibility of future earnings. Tamdown has been active and competitive in the market, both winning and negotiating work from its extensive client base, leveraging our continued strong relationships and reputation for quality work. Tamdown has been successful in securing new business throughout the period, and even with the acceleration of delivery on site, the order book increased by 12.0% to £95.5m (2021: 85.3m). TriConnex has continued to increase its order book, even with a record level of revenue achieved in the year. The order book for TriConnex at the yearend totalled £197.4m (2021: £189.0m), with the strong performance continuing to be driven by the up front, mission-critical nature of securing utility network connections on development sites. The order book for eSmart Networks has increased substantially during the year, driven by the growing demand for electric vehicle charging, industrial energy transition solutions and renewable energy infrastructure. The order book for eSmart Networks increased by 71.8% during the year to end the year at £23.2m (2021: £13.5m), with a growing customer base in all the sectors the business is addressing.

During the year the Group has completed the sale and leaseback of its head office building, Nexus Park. This transaction has increased the Group's cash and cash equivalents balance by £2.9m and eliminated the Group's borrowings of £10.6m. The disposed-of assets were sold at net book value and the subsequent lease arrangement will result in increased depreciation and interest expenses.

Financial performance

Total revenue for the Group (including discontinued operations) increased by 26.6% to £173.4m (2021: 137.0m). The revenue for all businesses increased during the year, with Tamdown's revenue increasing to £98.4m (2021: £78.0m), TriConnex's revenue increasing to 55.7m (2021: £50.7m) and eSmart Networks' revenue increasing to £19.3m (2021: £9.0m).

Total gross profit (including discontinued operations) for the year increased to £30.3m (2021: £24.2m) with the overall gross margin decreasing to 17.4% (2021: 17.7%). The gross margin for Tamdown improved significantly against the prior year to 10.1% (2021: 7.7%) as operational enhancements continue to improve margins and new, more profitable contracts start to dominate the contract mix.

TriConnex maintained a high gross margin at 29.3% (2021: 30.9%), with a decline against the prior year due to the high levels of input cost inflation being faced. eSmart Networks' gross margin was down against the prior year at 20.8% (2021: 28.0%) due to the impact of one low-margin contract, completed in the first half of the financial year, which depressed the H1 gross margin to 15.9%, whilst the gross margin in H2 reverted to expected levels of around 25%.

Administrative expenses for the Group, including discontinued operations, increased in the year to a total of £26.2m (2021: £20.2m), with the main increase incurred by eSmart Networks, where the average headcount has increased by 81% to support the continued growth of the business. The exceptional item for the current year relates to the profit on sale and leaseback of Nexus Park. The exceptional item in the prior year related to the profit on sale of Tamdown's former office, which generated a profit of £1.3m. 

The Group's total operating profit, including discontinued operations, for the year before exceptional items was £4.0m (2021: £2.9m) and with the impact of exceptional items, totalled £4.0m (2021: £4.2m). The operating loss, before the impact of exceptional items, for the continuing operations reduced to £0.3m (2021: loss £2.6m) and inclusive of the impact of exceptional items was a loss of £0.3m (2021: loss £1.3m). The profit for the year attributable to equity holders of the parent company was £2.7m (2021: £3.0m).  

Other financial information

Net finance costs

The net finance charge for the year totalled £0.6m (2021: 0.4m). Interest received on bank deposits continued to be low, £0.0m (2021: £0.0m) due to low interest rates. Interest payable totalled £0.6m (2021: £0.4m), constituted as interest payable on bank borrowings of £0.2m (2021: £0.3m), with the reduction due to the reduction in bank borrowings and interest on lease liabilities of £0.4m (2021: 0.1m), with the increase related to the interest on the increase in lease liabilities following the sale and leaseback of Nexus Park.

Tax

The Group recorded a total tax charge, including discontinued operations, for the year of £0.7m (2021: 0.8m), representing an effective tax rate of 21.5% (2021: 20.8%). The income tax expense related to the continuing operations totals £0.1m (2021: £0.1m) and £0.6m (2021: £0.7m) relates to discontinued operations.

Earnings per share

Basic earnings per share for total operations equated to 6.0p per share, compared to 6.6p per share in 2021. The diluted earnings per share for total operations was 5.9p (2021: 6.4p). The basic and diluted loss per share from continuing operations was 2.2p per share (2021: loss 4.0p).

Dividends

As noted in the Chairman's statement, the Board declared and paid an interim dividend of 1.0p per share (2021: 0.6p per share). A final dividend is not being recommended as the majority of the proceeds from the disposal of TriConnex and eSmart Networks are proposed to be distributed by way of a tender offer in early 2023.

Total dividend for the year equated to 1.0p per share (2021: 2.0p per share). The total cost of the dividend payment was £0.5m.

Statement of financial position

The Group continues to maintain a strong balance sheet, with shareholders' funds increasing during the year to 30 September 2022 by £2.0m to £34.1m (2021: £32.1m), the movement representing the trading performance of the Group companies less the payment of dividends totalling £1.1m.

The assets and liabilities of TriConnex and eSmart Networks are considered to be a disposal group in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, and so are disclosed separately on the statement of financial position. Assets classified as held for sale total £57.4m, including cash and cash equivalents of £19.6m, contract assets of £17.9m and trade and other receivables of £15.1m. Liabilities associated with assets classified as held for sale total £49.1m, including trade and other payables of £16.4m and contract liabilities of £31.5m.

In April 2022, the Group completed a sale and leaseback transaction of Nexus Park, the Group's head office building, which generated proceeds of £13.5m, clearing the Group's borrowings of £10.6m. The Group simultaneously entered into a 20 year lease, which created an IFRS 16 right of use asset of £10.8m and an associated lease liability of £10.9m.

Cash flow

The Group utilised £5.3m (2021: utilised £2.6m) of cash in the year, resulting in a cash and cash equivalents balance at 30 September 2022, inclusive of the discontinued operations, of £24.2m (2021: £29.5m). The cash and cash equivalents balance that relates to the continuing operations totalled £4.6m, with £19.6m related to the discontinued operations.

Operating cash flows before working capital movements generated £6.5m (2021: generated £5.1m). Working capital increased during the year by £8.9m (2021: increase of £1.7m), with increases in debtors, contract assets and inventories partly mitigated by increases in payables and contract liabilities, resulting in cash used in operating activities of £2.4m (2021: generated £3.4m). Tax and interest payments amounted to £0.8m (2021: £0.7m). Cash generated from investing activities totalled £12.8m (2021: utilised £5.8m), with £13.6m generated from the proceeds of disposal of property, plant and equipment, including £13.5m on the disposal of Nexus Park and £0.8m used to acquire fixed assets. Net cash outflows from financing activities totalled £14.9m (2021: inflow £0.4m) with £0.6m inflow from the drawdown of hire purchase facilities and outflows of £11.7m on the repayment of bank loans, £2.8m on lease repayments and £1.1m (2021: £0.3m) on dividend payments. 

The Group continues to have a good relationship with its sole banker, Allied Irish Bank ("AIB"). The current facilities provided by AIB include an undrawn revolving credit facility of £5.0m, and an associated accordion of £5.0m. The Group is fully compliant with its banking covenants.

Treasury risk management

The Group's cash balances are centrally pooled and invested, ensuring the best available returns are achieved, consistent with retaining liquidity for the Group's operations. The Group deposits funds only with financial institutions which have a minimum short-term credit rating of A. As the Group operates wholly within the UK, there is no requirement for currency risk management.

Summary and outlook

Nexus has had a successful year, with each business growing and effectively dealing with the challenges of input cost inflation, in addition to the successful sale and leaseback of Nexus Park, which cleared all of the Group's borrowings.

TriConnex continued to grow both revenue and profit to record levels. eSmart Networks continued to play a leading part in the ongoing electrification of the UK, with growth in both revenue and its order book. Tamdown has continuously improved performance in the year and the growth of the order book along with accelerated activity on site provide confidence that existing and new customers will continue to demand our services, with improvements to profitability over the medium term expected as this continues.

Looking forward, the disposal of TriConnex and eSmart Networks ensures that Tamdown is well capitalised and able to progress with its two-year turnaround plan focusing on high-quality contracts and improving operating margins towards those achieved historically. Whilst economic and political uncertainty remains, the Group's market position, strong order book and healthy balance sheet give the Group a solid platform to deliver Tamdown's growth prospects for 2023 and beyond.

Operational Review

Civil Engineering

Tamdown, our Civil Engineering business, provides a range of civil engineering and infrastructure services to the UK housebuilding sector. These services include earthworks, building highways, substructures and basements and installing sustainable drainage systems. It has an established market-leading position having been in operation for over 40 years.

Financial and operating performance

Tamdown performed well throughout the year, with revenues increasing significantly in the first half of the year, compared to revenue recorded in the second half of the previous year. Revenue continued to grow in the second half of the current financial year, during Tamdown's traditionally busy trading period. The strong revenue growth is attributed to an acceleration of activity from the opening order book and from newly won contracts during the year. Overall revenue increased in the year by 26.1% to £98.4m (2021: 78.0m). 

The gross margin for the year has improved by 240 basis points to 10.1% (2021: 7.7%), with newly won contracts driving the gross margin improvements. The overall margin reflects old contracts impacted by additional costs incurred in previous years due to delays and less productive working periods, principally due to Covid-19. Whilst the operating environment continues to be characterised by input cost inflation, primarily in materials, energy and labour, the business is committed to taking the necessary actions to protect and maintain its margins. The gross margin will continue to show improvement as these older contracts complete. Gross profit for the period totalled £9.9m, an increase of 65% on the prior year (2021: £6.0m). 

Tamdown continues to maintain a tight control of costs, with administrative expenses, excluding the impact of exceptional items, being held broadly in line with revenue increases at £7.6m (2021: £6.7m). 

The operating profit for the year totalled £2.3m, being a £2.9m improvement on the prior year's operating loss, prior to the exceptional item, of 0.6m. The prior year operating profit of £0.6m included an exceptional profit of £1.3m relating to the sale of Tamdown's former office, which became surplus to requirements following the move to Nexus Park. There are no exceptional items in the current year's results.

Tamdown has been active and competitive in the market, negotiating and winning work from our extensive customer base, leveraging our continued strong relationships and reputation for quality work. Tamdown has been successful in securing new business throughout the year, and even with the acceleration of delivery on site, the order book increased by 12% over the year to £95.5m (2021: £85.3m).

Our civil engineering markets

Tamdown customers are UK housebuilders and affordable housing developers, including housing associations. As such, the UK housebuilding market is key to Tamdown. The fundamental market growth drivers for our business are positive since the housing market has been in a long-term position of structural undersupply as the number of new houses built has failed to keep pace with the rate of household formation. The recent Government briefing paper in February 2022 'Tackling the under-supply of housing in England', references the National Housing Federation estimate of up to 340,000 new homes per year needed in England up to 2031, which is ahead of the Government's estimate of 300,000 new homes target to tackle the housing shortage. Recent statements from the Secretary of State confirm the current Governments commitment to building 300,000 houses every year by the mid-2020s. There is the expectation that the housing deficit will remain over the long- term. The prevalence of this deficit has attracted a significant amount of Government stimulus to the sector.

Tamdown operates in the South East of England and London, where the undersupply of housing is more acute compared to the rest of the UK. Tamdown works with the majority of the quoted housebuilders, who account for approximately 50% of total private new build volumes. This dominance is expected to continue as these customers work through their land bank and develop larger schemes.

Tamdown also works alongside a number of housing associations that deliver mixed tenure developments and are focused on the affordable homes segment of the housing market, offering variety and strength to its customer base.

Tamdown is working in partnership with our customers, delivering fundamental and essential elements of the modular building revolution. This, and other Modern Methods of Construction, are enabling the construction industry to build better, greener and faster while meeting new targets and legislation.

There is general acceptance that there is a deficit in housing supply and so, with Tamdown's established market position as one of the leading providers of infrastructure and civil engineering services to major UK housebuilders, we are well placed to benefit from the Government's current and future stimulus.

Growth strategy

Tamdown's ambition is to return to yielding profits in a sustainable manner through the successful delivery of our strategic goals, including:

Margin enhancement:

Tamdown's ongoing focus is on how the team plans and procures the resources required on projects, the mobilisation process and the interaction with customers before and during delivery, to ensure that projects are delivered safely, on time, to a high quality and profitably. Tamdown leverages our strong customer relationships along with our reputation for delivering quality work to secure projects with appropriate margins, especially with increased inflationary price pressures within the cost base. The selection of customers and projects will continue to be important in ensuring that margin improvement is achieved and maintained.

Multi-phase projects:

A significant element of Tamdown's work is from larger, multi-phase projects, which provide a good level of visibility of future revenues.

These projects are typically large housing developments which are completed in phases. Once Tamdown has won an initial phase it is typically retained for the remainder of the scheme, the phases of which can extend over many years. With Tamdown's extensive customer base and long standing reputation for great customer service, the Company is well placed to be awarded multi phase projects.

Market penetration:

Tamdown has strong relationships with many of the regional businesses of blue-chip customers. Within the geographies where Tamdown operates, a number of existing customers have additional regional businesses to which Tamdown does not currently provide services. Accordingly, there is an opportunity to increase market share by winning projects with these additional regional businesses. This is likely to be achieved through the provision of excellent customer service to current customers, which will lead to recommendations to other regions. Tamdown has been successful during the year in deepening its market penetration with new and existing customers, including new regions of existing customers. These businesses present an ongoing growth opportunity.

Customer diversification:

The majority of Tamdown's customers are large residential housebuilders. Tamdown is developing relationships with customers that address the affordable housing market, such as housing associations that undertake developments themselves and the housebuilders that build on behalf of housing associations via a partnership model.

Outlook

Tamdown has an established market position, with a reputation for providing quality services to UK housebuilders. The operating environment continues to be characterised by significant levels of input cost inflation, primarily in materials, energy and labour, but the business is committed to taking the necessary actions to protect and maintain our margins. There is currently a level of uncertainty regarding consumer demand for new properties following recent interest rate increases, however the backdrop of Government support to counter the housing supply deficit, alongside order book wins, provides us with confidence that existing and new customers will continue to demand our services, with improvements to profitability over the medium term as the turnaround continues.

Multi-Utilities  

TriConnex, our Multi-Utilities business, designs, installs and connects electricity, water, gas, fibre networks and electric vehicle charging infrastructure on new residential developments. Working with major housing developers, the business offers end-‑to-‑end solutions of utility connections to new residential developments.

Financial and operating performance  

Revenue for TriConnex increased by 9.7% to £55.7m (2021: 50.7m). Activity on sites has been high throughout the year, with customers requiring final connections to fulfil consumer demands. The revenue growth occurred in all regions, with the core South East region being the most pronounced with growth of over 10% in the year.

TriConnex is a high gross margin business, principally due to the technical, office-‑based, added-‑value nature of the services it provides, resulting in a higher proportion of overhead costs. The current operating environment is characterised by input cost inflation, primarily in materials, energy and labour; however, the business is committed to taking the necessary actions to protect and maintain its margins. The high gross margin has broadly been maintained during the year, with the margin recorded for the year of 29.3% (2021: 30.9%). The increase in activity, resulting in the increased revenue for the year, led to the increase in gross profit to £16.3m (2021: £15.7m)  

As TriConnex provides a full concept to connection service with a significant amount of desktop planning, research and technical design, the majority of TriConnex's staff are office based. TriConnex has maintained a tight control of costs, with the overhead increase for the year limited to less than 4%, at £10.8m (2021: £10.4m), as operational efficiencies are realised.  

Operating profit increased by 5.0% to a record profit level of £5.6m (2021: £5.3m) with an operating margin of 10.0% (2021: 10.5%).  

TriConnex's order book has continued to grow throughout the year with growth of 4.4% over the year to £197.4m (2021: 189.0m).

Energy Transition  

eSmart Networks, our Energy Transition business, provides public electric vehicle charging, industrial electrification and renewable energy connections.   

Financial and operating performance  

eSmart Networks has continued to develop its offering to the electric vehicle ('EV') charging infrastructure sector, whilst also developing its services to the industrial electrification and the renewable energy infrastructure sectors.   

Revenue for the year grew significantly by 114.7% to £19.3m (2021: £9.0m), as the business continues to scale up in parallel to the growing pace of the EV charging infrastructure sector, along with industrial electrification and entering the renewable energy infrastructure sectors. Revenue was lower than anticipated as the business experienced some delays in the second half of the year to the conversion of its order book to revenue, due to longer lead times dictated by our customers and longer lead times relating to the manufacture and delivery of specialised equipment utilised on projects. The revenue relating to the delayed activity will be delivered in the current financial year.   

The gross margin recorded for the year was 20.8% (2021: 28.0%). The gross margin in H1 was 15.9%, with one low-margin contract impacting the period. The gross margin in H2 reverted to expected levels of 24.8%. The gross profit for the year totalled £4.0m (2021: £2.5m). Administrative expenses have grown with the scaling up of headcount to service the increased levels of activity, to £5.2m (2021: £2.4m), with the headcount increasing to 96 by the year end (2021: headcount 60). The delayed revenue in H2 and the continued scaling up of the business prevented eSmart Networks from achieving an operating profit in H2, resulting in an operating loss for the year of £1.2m (2021: profit £0.2m).  

The growing demand for electric vehicle charging, industrial electrification and renewable energy infrastructure has driven a substantial increase in the order book, with an increase of £9.7m to £23.2m (2021: £13.5m), an increase of 72% over the year.  

Consolidated statement of comprehensive income

For the year ended 30 September 2022

		2022	2021
	Note	£'000	£'000
Continuing operations
Revenue	2	98,392	77,324
Cost of sales		(88,482)	(71,330)
Gross profit		9,910	5,994
Administrative expenses		(10,225)	(7,427)
Other income	4	-	120
Operating loss before exceptional items		(315)	(2,579)
Exceptional items	5	-	1,266
Operating loss		(315)	(1,313)
Finance income	6	13	-
Finance expense	6	(607)	(384)
Loss before tax		(909)	(1,697)
Taxation	7	(109)	(92)
Loss from continuing operations		(1,018)	(1,789)
Discontinued operations
Profit from discontinued operations (after tax)		3,729	4,764
Profit and total comprehensive income for the year attributable to equity holders of the parent		2,711	2,975
Earnings/(losses) per share (p per share)
Basic (p per share) - total operations	9	5.96	6.56
Diluted (p per share) - total operations	9	5.89	6.43
Basic (p per share) - continuing operations	9	-2.24	-3.95
Diluted (p per share) - continuing operations	9	-2.24	-3.95
Basic (p per share) - discontinued operations	9	8.20	10.51
Diluted (p per share) - discontinued operations	9	8.10	10.30

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
		Group	Restated Group
		2022	2021
	Note	£'000	£'000
Non-current assets
Property, plant and equipment	10	5,459	19,584
Right of use assets	11	12,620	2,415
Goodwill		2,361	2,361
Total non-current assets		20,440	24,360
Current assets
Inventories		43	2,495
Trade and other receivables		30,388	38,150
Contract assets		8,120	19,107
Corporation tax asset		27	84
Cash and cash equivalents		4,597	29,517
Assets classified as held for sale		57,411	-
Total current assets		100,586	89,353
Total assets		121,026	113,713
Current liabilities
Borrowings		-	2,076
Trade and other payables		21,698	33,894
Contract liabilities		3,543	33,495
Lease liabilities	11	1,663	1,090
Corporation tax liability		-	-
Liabilities associated with assets classified as held for sale		49,094	-
Total current liabilities		75,998	70,555
Non-current liabilities
Borrowings		-	9,365
Lease liabilities	11	10,793	1,499
Deferred tax liabilities		95	162
Total non-current liabilities		10,888	11,026
Total liabilities		86,886	81,581
Net assets		34,140	32,132
Equity attributable to equity holders of the Company
Share capital		911	908
Share premium account		9,419	9,419
Retained earnings		23,810	21,805
Total equity		34,140	32,132

 

Consolidated statement of changes in equity

For the year ended 30 September 2022

	Share capital	Share premium account	Retained earnings	Total
	£'000	£'000	£'000	£'000
Equity as at 1 October 2020	905	9,419	18,476	28,800
Transactions with owners
Dividend paid	-	-	(272)	(272)
Share-based payments	-	-	626	626
Issue of share capital	3	-	-	3
	3	-	354	357
Total comprehensive income
Profit and total comprehensive income for the year	-	-	2,975	2,975
	-	-	2,975	2,975
Equity as at 30 September 2021	908	9,419	21,805	32,132
Transactions with owners
Dividend paid	-	-	(1,091)	(1,091)
Share-based payments	-	-	385	385
Issue of share capital	3	-	-	3
	3	-	(706)	(703)
Total comprehensive income
Profit and total comprehensive income for the year	-	-	2,711	2,711
	-	-	2,711	2,711
Equity as at 30 September 2022	911	9,419	23,810	34,140

Consolidated statement of cash flows

For the year ended 30 September 2022

			Restated
		Group	Group
		2022	2021
	Note	£'000	£'000
Cash flow from operating activities
Profit before tax (including discontinued operations)		3,454	3,757
Adjusted by:
Profit on disposal of property, plant and equipment - owned		-	(1,288)
Share-based payments		385	626
Finance expense (net)		588	402
Depreciation of property, plant and equipment - owned		833	492
Depreciation of property, plant and equipment - right of use		1,215	1,110
Operating profit before working capital changes		6,475	5,099
Working capital adjustments:
(Increase)/decrease in trade and other receivables		(7,384)	(485)
(Increase) in contract assets		(6,818)	(6,380)
(Increase) in inventory		(430)	(1,311)
Increase/(decrease) in trade and other payables		4,155	1,602
Increase in contract liabilities		1,565	4,914
Cash (used in)/generated from operating activities		(2,437)	3,439
Interest paid		(244)	(355)
Taxation paid		(550)	(343)
Net cash (used in)/generated from operating activities		(3,231)	2,741
Cash flow from investing activities
Purchase of property, plant and equipment - owned		(795)	(7,681)
Proceeds from disposal of property, plant and equipment - owned		13,555	1,902
Proceeds from disposal of assets measured at FVOCI		-	3
Interest received		39	-
Net cash generated from/(used in) investing activities		12,799	(5,776)
Cash flow from financing activities
Dividend payment	8	(1,091)	(272)
Drawdown of term loan		-	3,538
Drawdown on HP agreement		587	-
Repayment of term loan		(11,663)	(1,459)
Principal elements of lease repayments		(2,753)	(1,373)
Net proceeds from the issue of share capital		3	3
Net cash (used in)/generated from financing activities		(14,917)	437
Net change in cash and cash equivalents		(5,349)	(2,598)
Cash and cash equivalents at the beginning of the year		29,517	32,115
Cash and cash equivalents at the end of the year		24,168	29,517
Reconciliation of cash and cash equivalents at the end of the year
Held by continuing operations		4,597	29,517
Held by discontinued operations		19,571	-
Cash and cash equivalents at the end of the year		24,168	29,517

1.  Accounting policies

The financial information does not constitute the Company's financial statements for the years ended 30 September 2022 or 2021 but is derived from those statements. Financial statements for 2021 have been delivered to the Registrar of Companies and those for 2022 will be delivered following the Company's annual general meeting. The auditor has reported on those statements; their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498 (2) or (3) Companies Act 2006 or equivalent preceding legislation.

While the financial information included in this preliminary announcement have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards, this announcement itself does not contain sufficient information to fully comply with those Standards.

The accounting policies used to prepare these preliminary results are the same as those used in the preparation of the Group's audited accounts for the year ended 30 September 2021 which have been delivered to the Registrar of Companies.  

In determining the appropriate basis of preparation of these financial statements, the Directors are required to consider whether the Group can continue in operational existence. For the current year, as the transaction to sell TriConnex and eSmart Networks has not completed at the date of approving the Annual Report, management has forecasts based on two scenarios, firstly, on the basis that the transaction does not go ahead and secondly on the basis that the transaction does complete. The scenarios have then been sensitised to reflect severe but plausible downside scenarios reducing forecast revenue and forecast margin, reflecting a cautious view on the trading outlook based on the current market.

For both scenarios the budgets for the two-year period to September 2024 approved by the Board have been used.

These budgets were then subject to a range of sensitivities including a severe but plausible scenario together with mitigating actions. Changes to the principal assumptions included:

· a reduction in work secured of approximately 10%;

· a reduction in revenue of approximately 10%; and

· a reduction in gross profit of approximately 2%.

The budgets, as approved by the Board, satisfied all of the financial covenants of the banking facilities.  The banking facilities would remain in place in the event that the transaction does not go ahead. The downside scenarios significantly reduced profitability, resulting in limited headroom on some of the financial covenants.

Based on the results of the analysis undertaken for both scenarios, the Group is forecast to generate profits and cash in the year ending 30 September 2023 and beyond.  The Directors have a reasonable expectation that the Group has adequate resources to meet its liabilities as they arise for at least 12 months from the approval of these financial statements and, consequently, the Directors have adopted the going concern basis of accounting in the preparation of these financial statements.

2.  Revenue

Revenues from external customers are generated from the supply of services relating to civil engineering and construction contracts, design, installation and connection of multi-utility networks and electrification and electric vehicle infrastructure. Revenue is recognised in the following operating divisions:

		2022	2022	2022
		Continuing Operations	Discontinued Operations	Total
		£'000	£'000	£'000
Segment revenue		98,392	75,011	173,403
Inter-segment revenue		-	-	-
Revenue from external customers		98,392	75,011	173,403
Timing of revenue recognition
Over time		98,392	75,011	173,403
Customer type
Residential		98,392	55,670	154,062
Non-residential		-	19,341	19,341
		98,392	75,011	173,403
		2021	2021	2021
		Continuing Operations	Discontinued Operations	Total
		£'000	£'000	£'000
Segment revenue		78,047	59,739	137,786
Inter-segment revenue		(723)	(108)	(831)
Revenue from external customers		77,324	59,631	136,955
Timing of revenue recognition
Over time		77,324	59,631	136,955
Customer type
Residential		76,233	50,730	126,963
Non-residential		1,091	8,901	9,992
		77,324	59,631	136,955

3.  Segmental analysis

The Group is organised into the following three operating divisions under the control of the Executive Board, which is identified as the Chief Operating Decision Maker as defined under IFRS8 'Operating Segments':

· Tamdown;

· TriConnex; and

· eSmart Networks.

All of the Group's operations are carried out entirely within the United Kingdom.

The results for TriConnex and eSmart Networks have been presented as discontinued under IFRS 5, with the Tamdown and Group administration expenses comprising the continuing operations below. The related assets and liabilities of these operations have been similarly presented.
Segment information about the Group's operations is presented below:
	2022	2021
	£'000	£'000
Revenue from continuing operations
Tamdown	98,392	78,047
Inter-company trading	-	(723)
Total revenue from continuing operations	98,392	77,324
Revenue from discontinued operations
TriConnex	55,670	50,730
eSmart Networks	19,341	9,009
Inter-company trading	-	(108)
Total revenue from discontinued operations	75,011	59,631
Total revenue	173,403	136,955
Gross profit from continuing operations
Tamdown	9,910	5,994
Total gross profit from continuing operations	9,910	5,994
Gross profit from discontinued operations
TriConnex	16,319	15,665
eSmart Networks	4,024	2,522
Total gross profit from discontinued operations	20,343	18,187
Total gross profit	30,253	24,181
Operating profit from continuing operations after exceptional items
Tamdown	2,272	624
Group administrative expenses	(2,587)	(1,938)
Total operating profit from continuing operations after exceptional items	(315)	(1,314)
Operating profit from discontinued operations after exceptional items
TriConnex	5,568	5,302
eSmart Networks	(1,212)	171
Total operating profit from discontinued operations after exceptional items	4,356	5,473
Total operating profit after exceptional items	4,041	4,159
The value of depreciation included in the measure of segment profit is:
	2022	2021
	£'000	£'000
Tamdown	814	1,042
Group	733	73
Total deprecation - continuing operations	1,547	1,115
TriConnex	351	382
eSmart Networks	150	105
Total deprecation - discontinued operations	501	487
Total deprecation	2,048	1,602

4.  Other income

	2022	2021
	£'000	£'000
Continuing operations
Research and development expenditure credit	-	120
Discontinued operations
Research and development expenditure credit	-	13

5.  Exceptional items

	2022	2021
	£'000	£'000
Continuing operations
Gain on the disposal of fixed asset	-	1,266
Exceptional items in the prior year related to the disposal of Tamdown's former office building.

6.  Finance income and expense

	2022	2021
	£'000	£'000
Finance income
Continuing operations
Interest on bank deposits	13	-
Discontinued operations
Interest on bank deposits	26	-
Finance expense
Continuing operations
Interest on bank loan	(186)	(287)
Interest on lease liabilities	(421)	(97)
	(607)	(384)
Discontinued operations
Interest on bank loan
Interest on lease liabilities	(20)	(18)
	(20)	(18)
Finance expense (net)	(588)	(402)

7.  Taxation

	2022	2021
	£'000	£'000
Current tax - continuing operations:
UK corporation tax on profits for the year	79	-
Adjustment in respect of prior periods	-	281
Total current tax - continuing operations	79	281
Current tax - discontinued operations:
UK corporation tax on profits for the year	635	525
Adjustment in respect of prior periods	(19)	92
Total current tax - discontinued operations	616	617
Total current tax	695	898
Deferred tax - continuing operations:
Origination and reversal of timing differences	(94)	144
Adjustment in respect of prior periods	124	(314)
Effect of tax rate change on opening balance	-	(19)
Total deferred tax - continuing operations	30	(189)
Deferred tax - discontinued operations:
Origination and reversal of timing differences	17	33
Adjustment in respect of prior periods	-	26
Effect of tax rate change on opening balance	-	14
Total deferred tax - discontinued operations	17	73
Total deferred tax	47	(116)
Total tax charge	742	782
The tax assessed for the year is higher than (2021: higher than) the standard rate of corporation tax as applied in the UK. The differences are explained below:
	2022	2021
	£'000	£'000
Profit/(loss) before tax	3,454	3,757
Profit/(loss) before tax multiplied by the respective standard rate of corporation tax applicable in the UK (19.0%) (2021: 19.0%)	657	714
Effects of:
Fixed asset differences	(168)	(233)
Non-deductible expenses	229	149
Income not taxable for tax purposes	-	(24)
Other tax adjustments, reliefs and transfers	(59)	(45)
Chargeable gains/losses	-	128
Losses carried back	-	-
Adjustment in respect of prior periods - current tax	(19)	373
Adjustment in respect of prior periods - deferred tax	124	(288)
Deferred tax not recognised	-	13
Deferred tax - other	(22)	(5)
Total tax charge	742	782
Income tax expense from continuing operations	109	92
Income tax expense from discontinued operations	633	690
Total tax charge	742	782
There was no income tax (charged)/credited directly to equity in the year (2021: £nil).

8.  Dividends

	2022	2021
	£'000	£'000
Amounts recognised as distributions to equity holders in the year:
Interim dividend for the year ended 30 September 2022 of 1p per share (2021: 0.6p per share)	456	272
Final dividend for the year ended 30 September 2021 of 1.4p per share (2020: £nil per share)	635	-
	1,091	272

9.  Earnings/(losses) per share

Basic earnings/(losses) per share is calculated by dividing the profit/(loss) attributable to equity shareholders of the Company by the weighted average number of shares in issue for the year.

Diluted earnings/(losses) per share is calculated by adjusting the weighted average number of shares in issue for the year to assume conversion of all dilutive potential shares.

The calculation of the basic and diluted earnings/(losses) per share is based on the following data:

	2022	2021
	£'000	£'000
Weighted average number of shares in issue for the year	45,482,193	45,346,677
Effect of dilutive potential ordinary shares:
Share options (number)	578,508	926,345
Weighted average number of shares for the purpose of diluted earnings per share	46,060,701	46,273,022
Profit for the year attributable to equity shareholders	2,711	2,975
Basic earnings (p per share)	5.96	6.56
Diluted earnings (p per share)	5.89	6.43
Continuing operations
Loss for the year from continuing operations	(1,018)	(1,789)
Basic losses (p per share)	-2.24	-3.95
Diluted losses (p per share)	-2.24	-3.95
There is no dilutive effect of the share options given the loss in the continuing operations.
Discontinued operations
Profit for the year from discontinued operations	3,729	4,764
Basic earnings (p per share)	8.20	10.51
Diluted earnings (p per share)	8.10	10.30

10.  Property, plant and equipment

	Freehold land	Leasehold	Plant and	Motor	Fixtures and	Total
	and buildings	improvements	machinery	vehicles	fittings
	£'000	£'000	£'000	£'000	£'000	£'000
Cost
At 1 October 2020	11,785	657	2,298	1,292	722	16,754
Additions	5,763	-	97	135	1,686	7,681
Disposals	(627)	-	(526)	(387)	(400)	(1,940)
Transfer from right of use assets	-	-	74	-	-	74
At 30 September 2021	16,921	657	1,943	1,040	2,008	22,569
Additions	41	-	185	196	373	795
Disposals	(13,569)	-	(130)	(93)	(6)	(13,798)
Transfer to leasehold improvements	(3,393)	3,393	-	-	-	-
Transfer from right of use assets	-	-	232	-	-	232
Transfer to assets held for sale	-	-	(99)	(1,008)	(491)	(1,598)
At 30 September 2022	-	4,050	2,131	135	1,884	8,200
Accumulated depreciation
At 1 October 2020	302	657	1,576	750	498	3,783
Charge for the year	54	-	113	155	170	492
Disposals	(318)	-	(308)	(320)	(380)	(1,326)
Transfer from right of use assets	-	-	36	-	-	36
At 30 September 2021	38	657	1,417	585	288	2,985
Charge for the year	137	85	99	119	394	834
Disposals	(175)	-	(91)	(76)	-	(342)
Transfer from right of use assets	-	-	154		-	154
Transfer to assets held for sale	-	-	(56)	(542)	(292)	(890)
At 30 September 2022	-	742	1,523	86	390	2,741
Net book value
At 30 September 2020	11,483	-	722	542	224	12,971
At 30 September 2021	16,883	-	526	455	1,720	19,584
At 30 September 2022	-	3,308	608	49	1,494	5,459

11.  Right of use asset

The Group has leases for freehold property, plant and machinery, motor vehicles and fixtures and fittings. Leases for freehold property relate mainly to office properties, whilst the plant and machinery leases are predominantly large machinery used in site operations.
The statement of financial position shows the following information relating to right of use assets and leases:
			2022		2021
			£'000	£'000
Right of use assets
Freehold property			10,881	542
Plant and machinery			873	1,305
Motor vehicles			861	561
Fixtures and fittings			5	7
			12,620	2,415
Lease liabilities
Current			1,663	1,090
Non-current			10,793	1,499
			12,456	2,589

12.  Events after the reporting year

On 30 December 2022, the Board received an offer of £77,700,000 for the disposal of all the shares in eSmart Networks Limited and TriConnex Limited. The assets and liabilities related to these subsidiaries have been presented as assets held for sale as at year end and their results presented separately on the income statement as discontinued operations as per the Directors' consideration of IFRS 5. The transaction is expected to be completed on 3 February 2023. An analysis of the results of the discontinued operations can be found within Note 3.

 

END

 

 

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