Energiser Invts PLC Half-year Report
September 26 2019 - 2:00AM
UK Regulatory
TIDMENGI
26 September 2019
Energiser Investments plc
('Energiser' or the 'Group')
Half-yearly results to 30 June 2019
Energiser announces its half-yearly accounts for the six months to 30 June
2019.
Chairman's statement
I am pleased to present the interim results for Energiser Investments plc
("Energiser", "the Group" or "the Company") for the half year ended 30 June
2019.
Energiser Investments plc is an investment company whose strategy is to invest
in quoted and unquoted companies to achieve capital growth. The Company
continues to look for opportunities and is currently invested in an AIM listed
company, KCR Residential REIT plc ("KCR"). In March 2018, Energiser acquired
2,435,710 new KCR ordinary shares at 70p a share for a total of GBP1,704,997. As
at 30 June 2019, the share price of KCR had dropped to 49p per share resulting
in the Company's investment to be written down to GBP1,193,000.
KCR is an AIM quoted Real Estate Investment Trust ("REIT") focused on
investment in the UK residential Private Rented Sector ("PRS"). KCR invests in
whole apartment blocks of studio, one and two-bedroom flats in city centres,
close to railway stations and shopping facilities. It focuses on more
affordable rental properties for private tenants.
KCR's portfolio of properties was valued at GBP24.6m at 31 December 2018 an
increase of GBP15.1m compared to 31 December 2017. Its net asset value per share
at 31 December 2018 was 70.97p (30 June 2018: 88.17p). KCR's board remains
positive in its strategy of investing in low to mid-price blocks of apartments
for rental. It has found the reluctance of equity investors to fund companies
through the stock market challenging for its own growth plans as it relies on
raising equity and debt capital to grow its portfolio and rental income.
On 12 July 2019 KCR announced some important developments to raise working
capital, to provide a pipeline of new acquisitions and to extend its reach into
international markets. The proposals, which were passed at a general meeting
of KCR, are expected to provide it with access to capital, international
development expertise and refinancing options. This is expected to accelerate
KCR's objective of providing capital growth and dividend streams to investors.
It will also enable KCR to extend its reach beyond the UK into new residential
markets, including Australia, New Zealand and Germany.
Results
The Group had no revenues during the period (2018: Nil) as it had sold its
revenue generating investments. The Group made a loss before tax of GBP172,000
(2018: profit GBP298,000) which included a provision against the investment in
KCR of GBP122,000. Administrative expenses decreased from GBP63,000 to GBP50,000.
The Group's net assets decreased to GBP1.10m (2018: GBP2.07m) translating into net
asset value per share of 0.89p per share (2018:1.67p).
Outlook
We will continue to manage our investment in KCR and will also look for other
investment opportunities to achieve capital growth.
Stephen Wicks
Chairman
Group statement of comprehensive income
Unaudited Unaudited Audited
6 months 6 months year to
to 30 to 30 June 31
June 2019 2018 December
2018
Note GBP'000 GBP'000 GBP'000
Continuing operations
Revenue arising in the course of ordinary activities - - -
Cost of sales - - (1)
Gross loss - - (1)
Administrative expenses (50) (63) (92)
Operating loss 5 (50) (63) (93)
Finance income - 5 6
Other gains and losses (122) 356 (411)
(Loss)/profit before taxation 5 (172) 298 (498)
(Loss)/profit for the period attributable to (172) 298 (498)
shareholders of the Company
Total comprehensive (loss)/profit (172) 298 (498)
(Loss)/earnings per share
Basic and diluted (loss)/earnings per share from total 4 (0.14)p 0.24p (0.40)p
and continuing operations
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 Unaudited Audited as
as at 30 as at 30 at 31
June 2019 June 2018 December
2018
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Investments 6 1,193 2,143 1,315
1,193 2,143 1,315
Current assets
Trade and other receivables 15 44 8
Cash and cash equivalents 163 237 177
178 281 185
Total assets 1,371 2,424 1,500
LIABILITIES
Current liabilities
Trade and other payables 267 270 190
Deferred tax - 82 34
267 352 224
Total liabilities 267 352 224
Net assets 1,104 2,072 1,276
EQUITY
Share capital 2,392 2,392 2,392
Share premium account 7,189 7,189 7,189
Convertible loan 88 88 88
Merger reserve 1,012 1,012 1,012
Retained earnings (9,577) (8,609) (9,405)
Total equity 1,104 2,072 1,276
Group statement of changes in equity
Share
Share premium Convertible Merger Retained Total
capital account loan reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January 2,392 7,189 88 1,012 (8,907) 1,774
2018
Total comprehensive - - - - 298 298
profit
Balance at 30 June 2018 2,392 7,189 88 1,012 (8,609) 2,072
Total comprehensive - - - - (796) (796)
loss
Balance at 31 December 2,392 7,189 88 1,012 (9,405) 1,276
2018
Total comprehensive - - - - (172) (172)
loss
Balance at 30 June 2019 2,392 7,189 88 1,012 (9,577) 1,104
Group statement of cash flows
Unaudited 6 Unaudited Audited
months to 30 6 months year to
June 2019 to 30 June 31
2018 December
2018
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss)/profit before taxation (172) 298 (498)
Adjustments for:
Loss on sale of investment properties - 23
-
Fair value adjustment for listed investments 122 (356) 390
Interest income - (5) (6)
Changes in working capital:
- (Increase)/decrease in trade and other receivables (7) (11) 3
- Increase in trade and other payables 43 52 5
Net cash used in operating activities (14) (22) (83)
Cash flows from investing activities
Interest received - 6
-
Purchase of investments (1,705) (1,705)
-
Net cash used in investing activities (1,705) (1,699)
-
Cash flows from financing activities
Interest received 5 -
-
Net cash generated by financing activities 5 -
-
Net decrease in cash and cash equivalents (14) (1,722) (1,782)
Cash and cash equivalents at beginning of period 177 1,959 1,959
Cash and cash equivalents at end of period 163 237 177
1. Nature of operations and general information
The principal activity of the Group is as an investing company investing in
quoted and unquoted companies to achieve capital growth.
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 Burnham Yard, London End, Beaconsfield, Buckinghamshire, HP9 2JH.
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 25 September 2019.
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 2018 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 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 2018, 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 2018. The unaudited interim
group statement of financial position for the 6 months ended 30 June 2018 has
therefore been restated to reclassify the movement in the fair value in
investments from other comprehensive income to fair value through profit or
loss in line with the requirements of IFRS 9.
4. (Loss)/earnings per ordinary share
The (loss)/earnings per ordinary share is based on the weighted average number
of ordinary shares in issue during the period of 123,912,957 ordinary shares of
0.1p (2018: 123,912,957 ordinary shares of 0.1p) and the following figures:
Unaudited Unaudited Audited
6 months 6 months year to
to 30 to 30 31
June 2019 June 2018 December
2018
(Loss)/profit attributable to equity shareholders GBP'000 (172) 298 (498)
(Loss)/earnings per ordinary share (0.14)p 0.24p (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 Unaudited 6 Audited year
months to 30 June months to 30 June to 31
2019 2018 December 2018
GBP'000 GBP'000 GBP'000
Segment result
Investment activities:
Administrative expenses (50) (75) (105)
(50) (75) (105)
Rental activities:
Rental income - - (1)
Administrative expenses - 12 13
- 12 12
Operating loss (50) (63) (93)
Finance income 5 6
-
Other gains and losses (122) (411)
356
(Loss)/profit before tax (172) 298 (498)
Unaudited as at Unaudited as at 30 Audited
30 June 2019 June 2018 as at 31
December
2018
GBP'000 GBP'000 GBP'000
Segment assets
Investment activities:
Non-current assets 2,143 1,315
1,193
Current assets - other 178 237 185
1,371 2,380 1,500
Rental activities:
Current assets - other - 44 -
- 44 -
Total assets 1,371 2,424 1,500
Segment liabilities
Investment activities:
Current liabilities 267 234 224
267 234 224
Rental:
Current liabilities -
- 2 2
2 -
-
Current liabilities - corporation tax 34 -
-34
Current liabilities - deferred tax -
- 82
- 116 -
116
Total liabilities 267 352 224
Total assets less total liabilities 1,104 2,072 1,276
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
During the year ended 31 December 2018 the group acquired 2,435,710 shares in
KCR Residential Reit PLC, an AIM listed real estate investment trust who
specialise in the acquisition and management of rented residential portfolios
in the UK.
Investments
GBP'000
Cost
At 1 July 2017 and 31 December 2017 -
Additions 1,705
Change in fair value recognised in profit and loss 438
At 30 June 2018 2,143
Fair value movements
Change in fair value recognised in profit and loss (828)
At 31 December 2018 1,315
Change in fair value recognised in profit and loss (122)
At 30 June 2019 1,193
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
For further information, please contact:
Energiser Investments plc
John Depasquale +44 (0) 1494 762450
Nishith Malde +44 (0) 1494 762450
Cairn Financial Advisers LLP
Jo Turner +44 (0) 20 7213 0880
Sandy Jamieson
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