Interim Results for the six-months to 30 June 2023

Tanfield Group PLC

24 July 2023

 

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

Tanfield Group Plc

("Tanfield", or "the Company")

Interim Results for the six-month period to 30 June 2023

Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2023. The unaudited financial information will shortly be available on the Company website at www.tanfieldgroup.com.

Background

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

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

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

·    On 24 October 2019, the Company announced it had become necessary to issue and serve a claim in the English High Court (the "UK Proceedings") against its former solicitors acting for the Company at the time of the Contemplated Transaction.  On 18 October 2022, the Company announced that it had settled its claims in relation to the UK Proceedings on a no-fault basis. 

·    The Company's loss in H1 2023 reduced to £154k (H1 2022: £499k) primarily as a consequence of a reduction in legal expenditure following the settlement of the UK Proceedings, and the elimination of finance expenses following the repayment of borrowings, in late 2022.

Overview of investments

As announced on 18 May 2023, in the first quarter of 2023 Snorkel's sales increased by 4.4% to US$43.5m (Q1 2022: US$41.7m).   Whilst the increase in sales was a fairly modest US$1.8m in value, the EBITDA for the first quarter of 2023 improved to a US$0.2m profit (Q1 2022: US$3.5m loss), an improvement of some US$3.7m. Further information relating to the recent performance of Snorkel can be found in the 18 May 2023 announcement.

The Company is now focussed on the US Proceedings which are continuing, with a jury trial currently scheduled to take place in early 2024.  However, the Board expect the trial date will be rescheduled to around the summer of 2024.  The Board continue to believe that a positive outcome to those proceedings is possible.  So far as it is necessary, the Company will continue to vigorously defend its position whilst continuing to seek advice.    

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

For further information:

Tanfield Group Plc                                                                          020 7220 1666

Daryn Robinson                                                                                               

WH Ireland Limited - Nominated Advisor / Broker

James Joyce / Andrew de Andrade                                          020 7220 1666

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2023
					Six months to 30 Jun 23 (unaudited)				Six months to 30 Jun 22 (unaudited)			Year to  31 Dec 22  (audited)
					£000's				£000's			£000's
Revenue						-			-		-
Staff costs						(77)			(52)		(242)
Other operating income						11			10		6,900
Other operating expenses						(140)			(269)		(1,163)
(Loss)/profit from operations						(206)			(311)		5,495
Finance expense						-			(188)		(565)
Finance income						52			-		16
(Loss)/profit before tax						(154)			(499)		4,946
Taxation						-			-		-
(Loss)/profit & total comprehensive income for the period attributable to equity shareholders						(154)			(499)		4,946
(Loss)/profit per share
Basic and diluted (p)						(0.09)			(0.31)		3.04

BALANCE SHEET
AS AT 30 JUNE 2023
					30 Jun 23 (unaudited)		30 Jun 22 (unaudited)		31 Dec 22 (audited)
					£000's		£000's		£000's
Non current assets
Non current Investments					19,100		19,100		19,100
					19,100		19,100		19,100
Current assets
Trade and other receivables					53		67		30
Cash and cash equivalents					3,652		1,368		3,824
					3,705		1,435		3,854
Total assets					22,805		20,535		22,954
Non-current liabilities
Borrowings					-		2,958		-
					-		2,958		-
Current liabilities
Trade and other payables					69		132		64
					69		132		64
Total liabilities					69		3,090		64
Equity
Share capital					8,145		8,145		8,145
Share premium					17,336		17,336		17,336
Special reserve					66,837		66,837		66,837
Merger reserve					1,534		1,534		1,534
Retained earnings					(71,116)		(76,407)		(70,962)
Total equity					22,736		17,445		22,890
Total equity and total liabilities					22,805		20,535		22,954

STATEMENT OF CHANGES IN EQUITY

Share capital Share premium Share option reserve Merger reserve Special reserve Retained earnings Total £000's £000's £000's £000's £000's £000's £000's Six months to 30 June 2023 (unaudited) At 1 January 2023 8,145 17,336 - 1,534 66,837 (70,962) 22,890 Comprehensive income Loss for the period - - - - - (154) (154) Total comprehensive income for the period - - - - - (154) (154) At 30 June 2023 8,145 17,336 - 1,534 66,837 (71,116) 22,736 Six months to 30 June 2022 (unaudited) At 1 January 2022 8,145 17,336 - 1,534 66,837 (75,908) 17,944 Comprehensive income Loss for the period - - - - - (499) (499) Total comprehensive income for the period - - - - - (499) (499) At 30 June 2022 8,145 17,336 - 1,534 66,837 (76,407) 17,445 Year to December 2022 (audited) At 1 January 2022 8,145 17,336 - 1,534 66,837 (75,908) 17,944 Comprehensive income Profit for the year - - - - - 4,946 4,946 Total comprehensive income for the year - - - - - 4,946 4,946 At 31 December 2022 8,145 17,336 - 1,534 66,837 (70,962) 22,890

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2023
			Six months to 30 Jun 23 (unaudited)	Six months to 30 Jun 22 (unaudited)		Year to  31 Dec 22  (audited)
			£000's	£000's		£000's
(Loss)/profit before tax			(154)	(499)		4,946
Adjustment for:
Finance expense			-	188		565
Finance income			(52)	-		(16)
Changes in operating assets and liabilities / working capital:
(Increase)/decrease in receivables			(23)	(44)		(7)
Increase/(decrease) in payables			5	60		(8)
Cash (used in)/generated by operations			(224)	(295)		5,480
Interest paid			-	-		(810)
Net cash (used in)/generated by operating activities			(224)	(295)		4,670
Cash flow from Investing Activities
Interest received			52	-		16
Net used in investing activities			52	-		16
Cash flow from financing activities
Proceeds from borrowings			-	1,075		1,375
Repayment of borrowings			-	-		(2,825)
Net cash (used in)/generated by financing activities			-	1,075		(1,450)
Net increase in cash and cash equivalents			(172)	780		3,236
Cash and cash equivalents at the start of period			3,824	588		588
Cash and cash equivalents at the end of the period			3,652	1,368		3,824

1  Basis of preparation The Interim Report of the Company for the six months ended 30 June 2023 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 2022 which is available on request from the Company's registered office, c/o Weightmans LLP, 1 St James' Gate, Newcastle upon Tyne, NE99 1YQ or can be downloaded from the corporate website www.tanfieldgroup.com. 2  Accounting Policies Impact of accounting standards to be applied in future periods There are a number of standards and interpretations which have been issued by the International Accounting Standards Board that are effective for periods beginning subsequent to 31 December 2023 that the Group has decided not to adopt early. The Group does not believe these standards and interpretations will have a material impact on the financial statements once adopted.

3  Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

Six months

Six months

Year to

to 30 Jun 23

to 30 Jun 22

31 Dec 22

Number of shares

000's

000's

000's

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

162,907

162,907

162,907

Loss 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

(154)

(499)

4,946

Loss per share from operations

Basic and diluted (p)

(0.09)

(0.31)

(3.04)

 

END