REG - Earnz PLC - Interim Results
08/08/2024 07:00
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RNS Number : 6358Z Earnz PLC 08 August 2024
EARNZ PLC
("EARNZ", the "Company" or the "Group")
Interim Results
EARNZ plc, (AIM:EARN) an AIM Rule 15 cash shell which is seeking acquisitions
in the energy services sector, is pleased to announce its unaudited interim
results for the six months to 30 June 2024.
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
Enquiries:
EARNZ plc Tel: +44 (0) 7778 798 816
Bob Holt
John Charlton
Elizabeth Lake
Shore Capital & Corporate Limited (NOMAD & Joint Broker) Tel: +44 (0) 20 7408 4090
Tom Griffiths / Tom Knibbs / Lucy Bowden
Zeus Limited (Joint Broker) Tel: +44 (0)20 7220 1666
Hugh Morgan / Antonio Bossi / Andrew de Andrade
Executive Chair's Statement
On 28 February 2024, at a general meeting, the disposal of the legacy Solar
Business, Verditek Italy srl, and all related business assets of Verditek plc
(the "Solar Business") was approved, in return for satisfaction of the
outstanding bonds and accrued interest. The Solar Business was disposed of on
29 February 2024. This disposal was necessary in order to satisfy outstanding
creditor obligations of the Company, and to avoid putting the Company into
administration.
From 1 March, the Company has been regarded as an AIM Rule 15 cash shell,
having ceased to own, control or conduct all, or substantially all, of its
existing trading business, activities or assets. Under the AIM Rules for
Companies ("AIM Rules"), the Company needs to make an acquisition or
acquisitions which constitute a reverse takeover under AIM Rule 14 ("Reverse
Takeover") within 6 months (by 31 August 2024) of becoming an AIM Rule 15 cash
shell. Following the disposal of the Solar Business, the existing Board of
Directors of the Company all resigned with immediate effect, and a new Board
of Directors, was shortly thereafter appointed, being John Charlton and
myself. The Company was renamed EARNZ plc on 6 March 2024.
The Company's historic strategy had been to identify early-stage business
opportunities in the clean technology sector, invest in them and see them
through to commercial success. The focus of the new Board, following the
disposal of the Solar Business, has been to seek acquisition targets in the
energy services sector. The Board of Directors believes that this sector
presents some exciting commercial opportunities that will ultimately deliver
positive shareholder value.
To enable acquisitions and to fund ongoing working capital requirements of the
Company, there have been equity placements post year end in 2024. On 5 March
2024, shares were issued in the Company to raise £0.3 million. On 8 April
2024, the Company raised a further £3.7 million (before expenses) from the
issue of 9,333,333 shares at 7.5 pence per share. Additionally, the Board of
Directors took steps to amend the Company's capital structure in order to
reduce market volatility and increase liquidity in the Company's shares.
Existing shares in the Company were consolidated, following approval at a
general meeting on 4 April 2024, by exchanging each 100 existing shares for 1
new share.
Outlook and AIM Rule 15
EARNZ has separately announced today that its wholly owned subsidiary, EARNZ
Holdings Ltd ("EHL"), has entered into two separate sale and purchase
agreements, each conditional on shareholder approval, to acquire the entire
issued share capital of each of Cosgrove & Drew Ltd and South West Heating
Services Ltd (together, the "Acquisitions"). These transactions constitute a
Reverse Takeover and, subject to shareholder approval, will be completed on 29
August 2024. Once the Acquisitions have been completed, the Company will no
longer be classified as an AIM Rule 15 cash shell.
The Company has also announced today that it is proposing to raise
conditionally up to £10.0 million (£5.0 million of which is EIS/VCT
qualifying) by way of a placing [and subscription[, subject to shareholder
approval, the net proceeds of which will be used to satisfy the cash
consideration payable for the Acquisitions and to provide working capital for
the enlarged Group.
Summary of results
The results below relate to trading from 1 January 2024 to 29 February 2024
when the disposal of the Solar Business was completed and the Company became
an AIM Rule 15 cash shell. After re-stating results to separate out
discontinued operations, for the six-month period to 30 June 2024, the Group
incurred administrative expenses of £909,853 and recorded a loss after tax of
£907,711 from continuing operations (H1 2023: £644,576 and a loss after tax
of £671,833). In the six-month period to 30 June 2024 there was a loss from
discontinued operations of £134,292 (H1 2023: £299,156).
Board
On 13 March 2024, Elizabeth Lake was appointed as a non-Executive Director of
the Company and on 1 May 2024, Linda Main was appointed as the Senior
Independent Director. On 3 June 2024, Elizabeth Lake was appointed as the
Company's Chief Financial Officer and Sandra Skeete was appointed as an
independent non-Executive Director.
Bob Holt OBE
Executive Chair
07 August 2024
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2024
Unaudited Unaudited Audited
H1 2024 H1 2023 FY 2023
Re-presented* Re-presented*
Note £ £ £
Continuing operations
Revenue - - -
Direct costs - - -
Gross loss - - -
Administrative expenses (909,853) (644,576) (743,472)
Operating loss (909,853) (644,576) (743,472)
Other income - - (556,783)
Finance Income 7,895 2,143 2,975
Finance costs (5,753) (29,400) (47,106)
Loss before tax (907,711) (671,833) (1,344,386)
Income Tax - - -
Loss for the period from continuing operations (907,711) (671,833) (1,344,386)
Discontinued operations
Loss from discontinued operations, net of tax 6 (134,292) (299,156) (744,593)
Loss for the period (1,042,003) (970,989) (2,088,979)
Other comprehensive income
Items that are or may be reclassified to profit or loss:
Translation of foreign operations 8,976 (20,454) (17,137)
Total comprehensive loss for the period (1,033,027) (991,443) (2,106,116)
Total comprehensive loss for the period attributable to: -
Owners of the Company (1,033,027) (991,443) (2,106,116)
Loss per share
Basic and diluted (£) 3 (0.032) (0.219) (0.436)
* Comparative information has been re-presented due to discontinued operation.
Condensed Consolidated Statement of Financial Position
As at 30 June 2024
Unaudited Unaudited Audited
As at 30 June 2024 As at 30 June 2023 As at 31 December 2023
Restated**
Note £ £ £
Assets
Non-current assets
Property, plant and equipment 2,639 114,400 97,513
Right of use assets - - 306,085
Other receivables - 556,783 -
Non-current assets 2,639 671,183 403,598
Current assets
Inventories - 696,452 419,020
Trade and other receivables 159,641 236,498 170,458
Cash and cash equivalents 3,140,270 135,357 53,918
Current assets 3,299,911 1,068,307 643,396
TOTAL ASSETS 3,302,550 1,739,490 1,046,994
Equity and liabilities
Non-current liabilities
Loans and borrowings 4 - 500,000 522,587
Lease liabilities - - 93,756
Non-current liabilities - 500,000 616,343
Current liabilities
Trade and other payables 394,464 483,191 283,742
Provisions - - 30,212
Lease liabilities - - 214,467
Current liabilities 394,464 483,191 528,421
TOTAL LIABILITIES 394,464 983,191 1,144,764
Share capital 2,515,194 177,417 221,860
Share premium account 14,371,832 12,205,726 12,626,283
Share based payment reserve 178,796 383,191 178,796
Accumulated losses (14,157,736) (11,997,743) (13,115,733)
Currency translation reserve - (12,293) (8,976)
Non-controlling interests - - -
Total shareholders' equity 2,908,086 756,299 (97,770)
TOTAL EQUITY AND LIABILITIES 3,302,550 1,739,490 1,046,994
** Comparative restated at the year end due to prior year error, see note 8
for details
Condensed Statement of Changes in Equity
As at 30 June 2024
Issued share capital Share Premium Share based payment reserve Accumulated losses Currency translation reserve Non-controlling interest Total
£ £ £ £ £ £ £
Balance at 1 January 2023 177,417 12,205,726 332,806 (11,026,754) 8,161 - 1,697,356
Loss for the period - - - (970,989) - - (970,989)
Translation of subsidiary - - - - (20,454) - (20,454)
Total comprehensive loss for the period - - - (970,989) (20,454) - (991,443)
Share based payment - - 50,385 - - - 50,385
Balance previously reported at 30 June 2023 177,417 12,205,726 383,191 (11,942,000) (14,209) (106,887) 703,238
Prior year adjustment - - - (55,743) 1,916 106,887 53,060
Shareholders' equity at 30 June 2023 Restated 177,417 12,205,726 383,191 (11,997,743) (12,293) - 756,298
Loss for the period - - - (1,117,990) - - (1,117,990)
Translation of subsidiary - - - - 3,317 - 3,317
Total comprehensive profit/(loss) for the period - - - (1,117,990) 3,317 - (1,114,673)
Issue of shares (net of expenses) 44,443 420,557 - - - - 465,000
Share based payment - - (204,395) - - - (204,395)
Shareholders' equity at 31 December 2023 221,860 12,626,283 178,796 (13,115,733) (8,976) - (97,770)
Loss for the period - - - (1,042,003) - - (1,042,003)
Translation of subsidiary - - - - 8,976 - 8,976
Total comprehensive loss for the period - - - (1,042,003) 8,976 - (1,033,027)
Issue of shares (net of expenses) 2,293,334 1,745,549 - - - - 4,038,883
Shareholders' equity at 30 June 2024 2,515,194 14,371,832 178,796 (14,157,736) - - 2,908,086
** Comparative restated at the year end due to prior year error, see note 8
for details
Condensed Statement of Cash Flows
For the 6 months ended 30 June 2024
Note
Unaudited Unaudited Audited
H1 2024 H1 2023 FY 2023
Operating activities £ £ £
Loss before tax (1,042,003) (970,989) (2,088,979)
Adjustment for:
Depreciation 876 104,722 223,340
Finance costs 5,753 28,390 61,578
Finance income (7,895) (2,895) (3,722)
Impairment of ICSI receivable - - 556,783
Loss on disposal of assets 134,292 40,519 50,167
Share based payment expenses/(credit) - 50,384 (154,010)
(908,977) (749,869) (1,354,843)
Working capital adjustments
(Increase) / decrease in inventory - (161,493) 115,939
Increase in trade and other receivables (132,269) (85,130) (24,884)
Increase in trade and other payables 242,608 153,454 8,091
Cash used in operations (798,638) (843,038) (1,255,697)
Taxation - - -
Net cash outflow from operating activities (798,638) (843,038) (1,255,697)
Investing activities
Disposal of discontinued operations, net of tax 6 (159,242) - -
Purchase of property, plant and equipment (1,415) - (2,039)
Net cash outflow from investing activities (160,657) - (2,039)
Financing activities
Issue of ordinary shares (net of expenses) 4,038,883 - 465,000
Convertible loan notes issued - 500,000 500,000
Interest paid on loans - (11,885) (15,229)
Finance income 7,895 2,895 3,722
Repayments of corporate green bonds - (328,140) (324,858)
Payment of lease liabilities - (30,096) (163,217)
Net cash inflow from financing activities 4,046,778 132,774 465,418
Net increase/(decrease) in cash and cash equivalents 3,087,483 (710,264) (792,318)
Cash and cash equivalents at the beginning of the period 53,918 842,632 842,056
3,141,401 132,368 49,738
Exchange (losses)/gains on cash and cash equivalents (1,131) 2,989 4,180
Cash and cash equivalents at the end of the period 3,140,270 135,357 53,918
Notes to the Condensed Financial Statements
1. General Information
The Interim Financial Statements are for the six months ended 30 June 2024 and
are presented in British Pounds (£), which is the functional currency of the
parent company.
EARNZ plc ("EARNZ" or the "Company" or the "Group") is a public limited
company incorporated, registered and domiciled in England and Wales
(registration number 10114644), whose shares are quoted on the Alternative
Investment Market on the London Stock Exchange. Its registered office is
located at Holborn Gate, 330 High Holborn, London, WC1V 7QH.
EARNZ is an AIM Rule 15 cash shell seeking acquisition targets in the energy
services sector.
The Interim Financial Statements have been approved for issue by the Board of
Directors on 7 August 2024.
2. Basis of Preparation of Half-year Report
The financial information presented in this condensed consolidated interim
report for the half-year has been prepared in accordance with the recognition
and measurement requirements of UK adopted International Accounting Standards
("UK IAS"). The principal accounting policies adopted in the preparation of
the financial information in this Interim Report are unchanged from those used
in the Company's financial statements for the year ended 31 December 2023.
They have been prepared in accordance with IAS 34 'Interim Financial
Reporting'. They do not include all of the information required in annual
financial statements in accordance with UK IAS and should be read in
conjunction with the consolidated financial statements for the year ended 31
December 2023. The condensed consolidated interim report has not been reviewed
or audited by our independent auditors.
The financial information for the year ended 31 December 2023 presented in
this Interim Report does not constitute the Company's statutory accounts for
that period but has been derived from them. The Annual Report and Accounts
for the year ended 31 December 2023 were audited and have been filed with the
Registrar of Companies. The Independent Auditors' Report on the Annual
Report and Accounts for the year ended 31 December 2023 did not contain
statements under s498(2) or (3) of the Companies Act 2006, but did contain a
material uncertainty in relation to going concern, and the audit opinion was
qualified in respect of inventories as the auditor was unable to attend the
stock count at the year end. The income statement comparative for the year
ended 31 December 2023 included in this Interim Report has been represented to
show discontinued operations separately. The impact of this is set out in note
5.
The financial information for the 6 month periods ended 30 June 2023 and 30
June 2024 is unaudited.
A copy of the Company's audited consolidated financial statements for the year
ended 31 December 2023 is available on the website https://earnzplc.com/.
New Standards adopted as at 1 January 2024
Accounting pronouncements which have become effective from 1 January 2024 are:
· IFRS 16 Leases (Amendment - Liability in a Sale and Leaseback).
In September 2022, the IASB finalised narrow-scope amendments to the
requirements for sale and leaseback transactions in IFRS 16 Leases which
explain how an entity accounts for a sale and leaseback after the date of the
transaction.
· IAS 1 Presentation of Financial Statements (Amendment -
Non-current Liabilities with Covenants) Amendments made to IAS 1 Presentation
of Financial Statements in 2020 and 2022 clarified that liabilities are
classified as either current or non-current, depending on the rights that
exist at the end of the reporting period. Classification is unaffected by the
entity's expectations or events after the reporting date.
· IAS 7 and IFRS 7 (Amendments - Supplier finance arrangements) -
On 25 May 2023, the IASB issued 'Supplier Finance Arrangements (Amendments to
IAS 7 and IFRS 7)' to add disclosure requirements, and 'signposts' within
existing disclosure requirements, that ask entities to provide qualitative and
quantitative information about supplier finance arrangements.
These accounting pronouncements do not have a significant impact on the
Group's financial results or position and no changes to existing accounting
policies were required as a result of adopting any amendments.
Going concern
Following the Disposal, the Company has ceased to own, control, or conduct all
or substantially all its previous trading business, activities and assets and,
on 1 March 2024, became an AIM Rule 15 cash shell. As such, the Company is
required to make an acquisition or acquisitions which constitute a reverse
takeover under AIM Rule 14 ("Reverse Takeover") or be re-admitted to trading
on AIM as an investing company (which requires, inter alia, the raising of at
least £6.0 million) under the AIM Rules, on or before the date falling six
months from 1 March 2024. If the Company does not complete a Reverse Takeover
in accordance with AIM Rule 14, or otherwise if re-admitted to trading on AIM
as an investing company fails to implement its investing policy to the
satisfaction of the London Stock Exchange within twelve months of becoming an
investing company, the London Stock Exchange will suspend trading in the
Company's AIM securities pursuant to AIM Rule 40.
Following the Board changes in March, May and June 2024, the monthly cost of
maintaining the Company has reduced.
The directors have a clear strategy to identify Reverse Takeover targets and
have several opportunities in the pipeline. The cash resources of the Company
are sufficient to cover the costs of a Reverse Takeover. As announced this
morning, subject to shareholder approval on 27 August 2024, the Company will
be making two acquisitions before 31 August 2024. However, as the successful
completion of any Reverse Takeover target cannot be assured at this time, the
directors have concluded that a material uncertainty exists as to the
Company's ability to continue as a going concern beyond the AIM Rule 15
timetable. This uncertainty arises primarily because should the Company's
shares be suspended from trading on AIM or its listing is cancelled, the
Company's ability to raise finance for the longer term would be significantly
impaired.
Notwithstanding the above, as at the date of approval of the financial
statements, the base case cash flow forecast indicated that no additional cash
resources will be required over the course of the next 12 months. The
directors therefore consider the Group and the Company to be a going concern
and have therefore prepared these financial statements on the going concern
basis. It is noted that management has successfully raised money in the past,
but there is no guarantee that adequate funds will be available when needed in
the future.
Dividends
The Directors do not propose the payment of an interim
dividend.
Material changes in accounting estimates or judgments
The preparation of unaudited interim financial information requires management
to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expenses for the current and its corresponding financial period under
review. Actual results may differ from these estimates.
In preparing the unaudited interim financial information, the significant
judgements made by the management in applying the Group's accounting policies
and the sources of estimates uncertainty were consistent with those applied to
the audited financial statements for the year ended 31 December 2023. It is
relevant to note that as the Solar Business was disposed of on 29 February
2024 (see Note 5), the trade-related estimates and judgements such as warranty
provision, stock valuation, other receivables measurement, revenue recognition
and convertible loan note treatment are no longer considered material to the
Group at 30 June 2024.
3. Loss Per Share
The calculation of loss per share is based on the following loss and number of
shares:
6 months ended 30 June 24 6 months ended 30 June 23 For the year ended 31 December 23
Re-presented* Re-presented*
Loss for the period from continuing operations (£) (907,711) (671,833) (1,344,386)
Loss for the period from discontinued operations (£) (134,292) (299,156) (744,593)
Weighted average number of shares: Basic and diluted 32,092,945 4,435,383 4,788,503
Loss per share (£) - continuing operations (0.028) (0.152) (0.281)
Loss per share (£) - discontinued operations (0.004) (0.067) (0.155)
Loss per share (£) - basic and diluted (0.032) (0.219) (0.436)
Basic loss per share is calculated by dividing the loss for the period from
continuing operations of the Group by the weighted average number of ordinary
shares in issue during the period. Due to the loss in the periods and there
are no potentially dilutive ordinary shares, meaning the basic and diluted
loss per share were the same.
On 4 April 2024 a share consolidation was approved, so that every 100 shares
in the Company was consolidated to 1 share. This increased the nominal value
of each share from £0.0004 to £0.04, and reduced the number of shares from
954,649,497 to 9,546,495 shares. Accordingly, the comparative number of shares
at June 2023 and December 2023 has been represented.
4. Loans and Borrowings
6 months ended 30 June 24 6 months ended 30 June 23 For the year ended 31 December 23
£ £ £
Non-current
Convertible loan notes - 500,000 522,587
Total Non-current loans and borrowings - 500,000 522,587
Total loans and borrowing - 500,000 522,587
In May 2023 the Group raised £500,000 in secured convertible loan, with an
associated coupon of 7%. The convertible loan notes were redeemable 2 years
from the date of issue and were convertible at the option of the noteholder
into ordinary shares. As a result of the disposal of Verditek Solar Italy srl
("VSI") on 29 February 2024, there was an agreement with the loan note holders
that the principal of the convertible loan and accrued interest to date was
satisfied, £528,340 in return for the sale of the Solar Business (see Note
5).
In February 2024 the Company entered into a loan agreement with Bob Holt,
prior to his appointment as a director of the Company, for up to £300,000, of
which £250,000 was drawn down on 28 February 2024 prior to the disposal of
the Solar Business in order to settle outstanding liabilities of the Group.
The remaining £50,000 was subsequently drawn down. The loan was unsecured and
interest free, convertible in part or in whole at any equity fundraising
undertaken by the Company after the date of the drawdown. The loan was
converted into 4,000,000 ordinary shares on 8 April 2024.
5. Share capital and reserves
Number of shares Share capital Share premium
£ £
At 30 June 2023 443,538,306 177,417 12,205,726
Issue of ordinary shares 1 September 2023 111,111,111 44,443 420,557
At 31 December 2023 554,649,417 221,860 12,626,283
Issue of ordinary shares 4 March 2024 400,000,000 16,000 262,000
Issue of ordinary shares 4 April 2024 83 - -
Share consolidation 4 April 2024 (945,103,005) - -
Issue of ordinary shares April 2024 53,333,333 213,334 3,547,549
At 30 June 2024 62,879,828 451,194 16,435,832
On 4 March 2024 400,000,000 ordinary shares were issued at a price of 0.075
pence per share. On 4 April 2024 83 ordinary shares were issued at a price of
0.04 pence per share. On 4 April 2024 there was a share consolidation, so that
every 100 shares in the Company would be consolidated to 1 share. This
increased the nominal value of each share from £0.0004 to £0.04, and reduced
the number of shares from 954,649,500 to 9,546,495 shares. On 8 April 2024
53,333,333 ordinary shares were issued at a price of 7.5 pence per share.
There have been no new options granted or exercised in the period and options
over 2,700,000 shares were forfeit as part of the agreement to dispose of the
Solar Business, see Note 5. Following the share consolidation on 4 April 2024,
the number of options outstanding and exercise price was amended accordingly.
A further 22,500 warrants lapsed during the period. The number of shares
outstanding on which options have been granted at 30 June 2024 is 6,667: (30
June 2023: 19,500,000).
Number of share options Weighted average strike price Weighted average term
Number of warrants
(pence) (years)
Opening at 1 January 2024 3,700,000 2,250,000 4.68 3.8
Forfeit (3,033,334) - (1.35) (3.4)
Share consolidation (659,999) (2,227,500) 330.38 -
Lapsed - (22,500) 46.29 0.3
At 30 June 2024 6,667 - 380.00 0.7
6. Discontinued operations
On 28 February 2024 the Company's members approved the disposal of wholly
owned subsidiary Verditek Italy srl and all related business assets of the
Company (collectively, "Solar Business") to a newly incorporated private
company, Verditek Solar Limited, in return for satisfaction of the outstanding
secured convertible loan notes and accrued interest, £528,340 (see Note 4).
Verditek Solar Limited is a company owned by the convertible loan note
holders. The disposal of the Solar Business included:
- All issued share capital in Verditek Solar Italy srl
- All intellectual property rights associated with the Group's solar
operations
- The Company's interest in an agreement with Net Zero Valley, an
unrelated third party, to develop a solar panel manufacturing plant in Italy
- The Company's interest in the joint development project with
Paragraf Limited
- Any monies receivable from the earn-out agreement from the sale of
Industrial Climate Solutions Inc, which was disposed of by the Group in 2022.
On 29 February 2024, the Company completed the disposal of the Solar Business.
The results for the discontinued operations were not previously classified as
discontinued or held for sale in the 31 December 2023 year-end financial
statements as the criteria for such classification were not met as at that
date. The results of the discontinued Solar Business is presented below for
the period, along with comparative information:
H1 2024 H1 2023 FY 2023
Results of discontinued operations £ £ £
Revenue 39,507 254,958 606,260
Expenses (116,246) (554,114) (1,350,853)
Pre-tax result from operating activities (76,739) (299,156) (744,593)
Income tax - - -
Post tax result from operating activities (76,739) (299,156) (744,593)
Loss on sale of discontinued operation 6B (57,553) - -
Income tax on sale of discontinued operation - - -
Loss from discontinued operation, net of tax (134,292) (299,156) (744,593)
Other comprehensive income
Items that were or may be reclassified to profit or loss:
Translation of foreign operations 8,976 (20,454) (17,137)
Total comprehensive loss from discontinued operations (125,316) (319,610) (761,730)
Loss per share - basic and diluted* 3 (0.004) (0.067) (0.155)
* For comparability purposes, loss per share for comparative periods has been
represented based on a reduced number of shares resulting from the share
consolidation in April 2024 referred to in Note 3.
The loss for the period from discontinued operations, £134,292, was entirely
attributable to the owners of the Company. The loss for the period from
continuing operations, £907,711, was entirely attributable to the owners of
the Company.
H1 2024 H1 2023 FY 2023
6A. Cashflows used in discontinued operations £ £ £
Net cash used in operating activities 2,493 (166,726) (39,812)
Net cash used in investing activities (161,735) - -
Net cashflow for the period (159,242) (166,726) (39,812)
Costs of disposal paid in cash (151,887) - -
Cash and cash equivalents disposed of (9,848) - -
Net cash used in investing activities (161,735) - -
6B. Carrying amounts of assets and liabilities as at the date of sale £
Property, plant and equipment 81,532
Right of use assets 266,674
Inventories 414,011
Trade and other receivables 147,404
Cash and cash equivalents 9,848
Trade and other payables (210,482)
Lease liabilities (270,092)
Provisions (29,832)
Net assets on disposal 409,063
Non- cash consideration - convertible loan principal and interest satisfied 528,340
Costs of disposal paid in cash (151,887)
Carrying amount of net assets on disposal (409,063)
Carrying amount of Company plant & equipment on disposal (9,981)
Foreign exchange including reversal of translation reserve (14,962)
Loss on sale of discontinued operation (57,553)
7. Events after the reporting date
There were no events after the reporting date.
8. Prior period restatement
During 2023, the Group determined that the Non-Controlling Interest Reserve
recognized at prior balance sheet dates in connection with BBR Filtration
should have been released to accumulated losses during 2021. A correction to
the opening balance sheet position as at 1 January 2022 was presented in the
31 December 2023 year end financial statements. During 2023 it was determined
that a provision against a recoverable VAT balance recognized in prior years
should have been partially reversed in 2022, as there was information
available at the time which suggested that it was recoverable. A prior year
adjustment has been made as a result of there being an error identified in the
estimate made as at 31 December 2022.
The errors described have been corrected at 30 June 2023 by restating each of
the affected line items for prior periods. The impact on shareholders' equity
and assets is summarized as follows:
Consolidated statement of financial position Impact of correction error
As previously reported Adjustment As restated
30 June 2023 £ £ £
ASSETS
Trade and other receivables 183,437 53,060 236,497
SHAREHOLDERS' EQUITY
Accumulated losses (10,971,011) (55,743) (11,026,754)
Currency translation reserve (14,209) 1,916 (12,293)
Non-controlling interests (106,887) 106,887 -
9. Copies of the interim report
Copies of this interim report will be available on the Company's website at
https://earnzplc.com/ and from the Company's registered office, Holborn Gate,
330 High Holborn, London, WC1V 7QH.
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