28 September
2017
Energiser
Investments plc
('Energiser' or
the 'Company')
Posting of Interim
Results to 30 June 2017
Energiser announces that it has posted its Interim accounts for
the six months to 30 June 2017
Highlights
- Net assets increased to £1,804,000 (2016: £340,000)
resulting in a net asset value per share increase of 87% to 1.46p
(2016: 0.78p)
- Revenue increased by 6.5% and net rental income by
10%
- Improved financial performance relates to the successful
completion of the last sale at the Kingswood, Surrey development,
and, continued high occupancy across the Wellingborough property
portfolio
Dominic White, Chief Executive,
commented
“We are pleased with the financial progress of Energiser over
the period to June 2017. To maximise shareholder value, the
Company is considering the sale of the Wellingborough portfolio
which would further add to the capital available for investment
into new opportunities; we look forwards to updating shareholders
on progress in our micro self-storage strategy in due course.”
For further information, please visit
http://www.energiserinvestments.co.uk/ or contact:
Energiser Investments
plc
+44 1494 762 450
Dominic White, Chief
Executive
Nishith Malde,
Director
Cairn Financial Advisers
LLP
+44 20 7213 0880
Jo Turner / Sandy
Jamieson
Energiser Investments plc
Energiser is an AIM quoted investing company investing
predominantly in property operating platforms and associated assets
in the self-storage, serviced-apartments and secured property
lending sectors.
Chairman’s Statement
I am delighted to report on the Group’s Interim results for the
six months to 30 June 2017.
I reported in the 2016 year end report that we maintained
greater than 95% occupancy at the Wellingborough investment
portfolio, saw the majority of the development loan repaid at the
Kingswood, Surrey development and made great progress on the
sourcing, analysis and negotiation of a number of potential
transactions. We also raised new equity. I am pleased to say
that we have continued to make exciting progress on the current
portfolio and new potential transactions, such as the micro
self-storage opportunity as announced on 13
June 2017.
Results
Energiser continues to hold the 20 residential properties at
Wellingborough. The gross rental income from the portfolio
for the six months to 30 June 2017
was £82,000 (2016: £77,000), an increase of 6.5% over the previous
year. The net rental income, after relevant operating costs,
increased 10.2% to £65,000 (2016: £59,000). Energiser’s
administrative expenses have increased to £109,000 (2016: £35,000)
for the half year, predominantly due to the effect of engaging our
Chief Executive, Dominic White in
October 2016 and further increases
due to being a listed company. The loss before taxation
improved to £81,000 (2016: £161,000) with loss per share of 0.07p
(2016: 0.32p). Net assets have increased to £1,804,000 (2016:
£340,000) principally due to crystallising a £765,000 performance
related fee following successful completion of the Kingswood
development, and, the £1.26 million of new equity raised in
December 2016. This results in a 87.2% increase in net asset
value per share to 1.46p (2016: 0.78p). The Directors do not
recommend the payment of a dividend.
Operations
The 20 residential properties in Wellingborough,
Northamptonshire, have continued to maintain their high level of
occupancy at more than 95% over the period. As outlined in
the last report, the Directors believe that the value of this
portfolio is reaching a ceiling and that the associated capital
could be better invested into new opportunities. The small
size of the individual residential units and the strong letting
history of the portfolio should be attractive to residential
investors. The Directors are considering a sale of the
properties in the coming months.
Energiser’s investment in the development funding of 12
residential properties in Kingswood, Surrey has successfully
completed. The last unit was sold in the six months to June
and all payments have been received. The back-to-back funding
that Energiser raised relating to this investment has also been
repaid in full.
In June, Energiser committed to an initial investment
of £0.6m with an industry leading self-storage
entrepreneur, Paul Fahey, to help
him launch a micro self-storage operator. Self-storage is a
fast growing industry in the UK. Traditionally, self-storage
facilities operate in large stores positioned on the edge of towns
and cities. Micro self-storage focuses on smaller facilities
within dense urban centres and on the edge of smaller towns.
Due diligence relating to the acquisition of the first micro
self-storage facility is underway. We are in parallel working
on potential corporate opportunities to accelerate our entry into
this sector.
Outlook
The Group’s strategy is to focus on and engage in investment
opportunities within the real estate sector, in particular in real
estate operating companies. Our focus has been on three areas –
residential, self-storage and short-term property lending. We
are currently focused on ways to realise the equity within our
Wellingborough portfolio so that it can be recycled into new
opportunities with higher potential returns, and, the live
opportunities in the self-storage sector.
We look forward to sharing more details of Energiser’s progress
with shareholders in the coming months.
Stephen Wicks
Non-executive Chairman
28 September 2017
Group statement of comprehensive
income
|
|
Unaudited 6 months to 30 June 2017 |
Unaudited
6 months to 30 June 2016 |
Audited
year to 31 December 2016 |
|
Note |
£’000 |
£’000 |
£’000 |
Continuing
operations |
|
|
|
|
Revenue arising in the
course of ordinary activities |
|
82 |
77 |
160 |
Cost of sales |
|
(16) |
(17) |
(42) |
Gross
profit |
|
66 |
60 |
118 |
Administrative
expenses |
|
(109) |
(35) |
(110) |
Operating
profit |
5 |
(43) |
25 |
8 |
Finance costs |
|
(38) |
(193) |
(208) |
Finance income |
|
— |
7 |
(11) |
Loss before
taxation |
5 |
(81) |
(161) |
(211) |
Taxation |
|
— |
— |
— |
Loss for the period
attributable to shareholders of the Company |
|
(81) |
(161) |
(211) |
Other comprehensive
income – fair value adjustment to the profit on mezzanine funding
arrangement |
|
103 |
155 |
(5) |
Related
taxation/deferred taxation |
|
42 |
(73) |
14 |
Other comprehensive
income for the period, net of tax |
|
145 |
82 |
9 |
Total comprehensive
income |
|
64 |
(79) |
(202) |
Loss per
share |
|
|
|
|
Basic and diluted loss
per share from total and continuing operations |
4 |
(0.07)p |
(0.32)p |
(0.40)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 2017 |
Unaudited
as at 30 June 2016 |
Audited as
at 31 December 2016 |
|
Note |
£’000 |
£’000 |
£’000 |
ASSETS |
|
|
|
|
Non-current
assets |
|
|
|
|
Investment
property |
6 |
2,844 |
2,844 |
2,844 |
|
|
2,844 |
2,844 |
2,844 |
Current
assets |
|
|
|
|
Trade and other
receivables |
|
16 |
21 |
72 |
Available-for-sale
financial assets |
|
— |
654 |
553 |
Cash and cash
equivalents |
|
588 |
39 |
1,120 |
|
|
604 |
714 |
1,745 |
Total
assets |
|
3,448 |
3,558 |
4,589 |
LIABILITIES |
|
|
|
|
Current
liabilities |
|
|
|
|
Trade and other
payables |
|
332 |
791 |
733 |
Short term
borrowings |
|
80 |
946 |
694 |
Deferred tax |
|
— |
165 |
126 |
|
|
412 |
1,902 |
1,553 |
Non-current
liabilities |
|
|
|
|
Long term
borrowings |
|
1,232 |
1,316 |
1,288 |
|
|
1,232 |
1,316 |
1,288 |
Total
liabilities |
|
1,644 |
3,218 |
2,841 |
Net assets |
|
1,804 |
340 |
1,748 |
EQUITY |
|
|
|
|
Share capital |
|
2,392 |
2,312 |
2,392 |
Share premium
account |
|
7,190 |
5,747 |
7,198 |
Convertible loan |
|
88 |
88 |
88 |
Merger reserve |
|
1,012 |
1,012 |
1,012 |
Revaluation
reserve |
|
— |
610 |
537 |
Retained earnings |
|
(8,878) |
(9,429) |
(9,479) |
Total
equity |
|
1,804 |
340 |
1,748 |
Group statement of changes in
equity
|
|
Share |
|
|
|
|
|
|
Share |
premium |
Convertible |
Merger |
Revaluation |
Retained |
Total |
|
capital |
account |
loan |
reserve |
reserve |
earnings |
equity |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
Balance at 1 January
2016 |
2,312 |
5,747 |
88 |
1,012 |
528 |
(9,268) |
419 |
Total comprehensive
loss |
— |
— |
— |
— |
82 |
(161) |
(79) |
Balance at 30 June
2016 |
2,312 |
5,747 |
88 |
1,012 |
610 |
(9,429) |
340 |
Issue of equity |
80 |
1,451 |
— |
— |
— |
— |
1,531 |
Total comprehensive
loss |
— |
— |
— |
— |
(73) |
(50) |
(123) |
Balance at 31
December 2016 |
2,392 |
7,198 |
88 |
1,012 |
537 |
(9,479) |
1,748 |
Legal fees on issue of
equity |
— |
(8) |
— |
— |
— |
— |
(8) |
Realisation of
available for sale financial asset |
— |
— |
— |
— |
(537) |
537 |
— |
Total comprehensive
income |
— |
— |
— |
— |
— |
64 |
64 |
Balance at 30 June
2017 |
2,392 |
7,190 |
88 |
1,012 |
— |
(8,878) |
1,804 |
Group statement of cash flows
|
Unaudited 6 months to 30 June 2017 |
Unaudited
6 months to 30 June 2016 |
Audited
year to 31 December 2016 |
|
£’000 |
£’000 |
£’000 |
Cash flows from
operating activities |
|
|
|
Loss before
taxation |
(81) |
(161) |
(211) |
Adjustments for: |
|
|
|
Interest expense |
38 |
170 |
208 |
Interest Income |
— |
— |
11 |
Changes in working
capital: |
|
|
|
- Decrease/(increase)
in trade and other receivables |
755 |
17 |
(33) |
- Decrease in trade
payables |
16 |
(75) |
(127) |
Net cash generated
by/(used in) operating activities |
728 |
(49) |
(152) |
Cash flows from
investing activities |
|
|
|
Mezzanine finance
facility repaid |
— |
3,305 |
3,408 |
Net cash generated
by investing activities |
— |
3,305 |
3,408 |
Cash flows from
financing activities |
|
|
|
Re-payment of
borrowings |
(670) |
(3,372) |
(3,670) |
Net proceeds on issue
of ordinary shares |
(8) |
— |
1,530 |
Interest paid |
(582) |
(63) |
(214) |
Net cash used in
financing activities |
(1,260) |
(3,435) |
(2,354) |
Net
(decrease)/increase in cash and cash equivalents |
(532) |
(179) |
902 |
Cash and cash
equivalents at beginning of period |
1,120 |
218 |
218 |
Cash and cash
equivalents at end of period |
588 |
39 |
1,120 |
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 Decimal Place, Chiltern Avenue, Amersham,
Buckinghamshire, HP6 5FG.
Energiser Investments plc’s shares are quoted on AIM, a market
operated by the London Stock Exchange. The consolidated half-yearly
financial report has been approved for issue by the Board of
Directors on 28 September 2017.
The financial information set out in this half-yearly financial
report 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 2016 have been filed with the
Registrar of Companies and are available at
http://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 half-yearly financial report has been prepared
in accordance with International Accounting Standard 34 – Interim
Financial Reporting.
The consolidated half-yearly financial report should be read in
conjunction with the annual financial statements for the year ended
31 December 2016, 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 2016.
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 123,912,956
ordinary shares of 0.1p (2016: 43,787,956 ordinary shares of 0.1p)
and the following figures:
|
Unaudited 6 months to 30 June 2017 |
Unaudited
6 months to 30 June 2016 |
Audited
year to 31 December 2016 |
Loss attributable to
equity shareholders £’000 |
(81) |
(161) |
(211) |
Loss per ordinary
share |
(0.07)p |
(0.32)p |
(0.40)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 2017 |
Unaudited
6 months to 30 June 2016 |
Audited
year to 31 December 2016 |
|
£’000 |
£’000 |
£’000 |
Segment
result |
|
|
|
Investment
activities: |
|
|
|
Administrative
expenses |
(108) |
(34) |
(106) |
|
(108) |
(34) |
(106) |
Rental
activities: |
|
|
|
Rental income |
66 |
60 |
118 |
Administrative
expenses |
(1) |
(1) |
(4) |
Fair value adjustment
on investment property |
— |
— |
— |
|
65 |
59 |
114 |
Operating
(loss)/profit |
(43) |
25 |
8 |
Finance Income |
— |
— |
(11) |
Finance costs |
(38) |
(193) |
(208) |
Fair value adjustment
on interest rate swap |
— |
7 |
— |
Loss before
tax |
(81) |
(161) |
(211) |
|
Unaudited as at 30 June 2017 |
Unaudited
as at 30 June 2016 |
Audited as at 31 December 2016 |
|
£’000 |
£’000 |
£’000 |
Segment
assets |
|
|
|
Investment
activities: |
|
|
|
Non-current
assets |
— |
— |
— |
Current assets |
595 |
45 |
— |
|
595 |
45 |
— |
Rental: |
|
|
|
Non - current assets –
investment property |
2,844 |
2,844 |
2,844 |
Current assets –
other |
9 |
15 |
1,192 |
|
2,853 |
2,859 |
4,036 |
Mezzanine funding
arrangement: |
|
|
|
Current assets |
— |
654 |
553 |
|
— |
654 |
553 |
Total
assets |
3,448 |
3,558 |
4,589 |
Segment
liabilities |
|
|
|
Investment
activities: |
|
|
|
Current
liabilities |
170 |
791 |
749 |
|
170 |
791 |
749 |
Rental: |
|
|
|
Current
liabilities |
158 |
946 |
321 |
Non-current
liabilities |
1,232 |
1,316 |
1,288 |
|
1,390 |
2,262 |
1,609 |
Other: |
|
|
|
Current liabilities –
accrued interest |
— |
— |
357 |
Current liabilities –
corporation tax |
84 |
— |
— |
Current liabilities –
deferred tax on fair value adjustment |
— |
165 |
126 |
|
84 |
165 |
483 |
Total
liabilities |
1,644 |
3,218 |
2,841 |
Total assets less
total liabilities |
1,804 |
340 |
1,748 |
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. Investment property
|
Investment Property
£’000 |
Cost or fair
value |
|
At 1 July 2016 |
2,844 |
Fair value
adjustment |
— |
At 31 December
2016 |
2,844 |
Fair value
adjustment |
— |
At 30 June
2017 |
2,844 |