Eight Capital Ptnrs. - 2021 Interim Results
29/09/2021 06:59
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RNS Number : 2996N Eight Capital Partners PLC 29 September 2021
29 September 2021
EIGHT CAPITAL PARTNERS PLC
("Eight Capital" "ECP" or the "Company")
UNAUDITED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2021
Eight Capital Partners plc (AQSE: ECP), announces its interim results for the
half year ending 30 June 2021.
Chairman's Interim Report
I report on the Company's interim results for the six months to 30 June 2021.
This report is being issued in the context of the Company's most recent
announcement, released on 27 September, which highlights that it will
henceforth change its status from being an investing company to being an
operating group. In practical terms, this means that all future financial
reporting will be made under IFRS reporting standards, consolidating the
results and balance sheets of its 100% owned (and other future controlled)
subsidiaries, rather than as a standalone company, applying the UK reporting
standard FRS 102, which treats those subsidiaries as investments and
incorporates the changes in their underlying value in the Company's income
statement.
This report therefore, for the final time, presents Eight Capital as an
investing company quoted on the AQSE Growth Market. Its stated objective
has been to generate an attractive rate of return for shareholders,
predominantly through capital appreciation, by taking advantage of
opportunities principally to invest in the Technology, Media and Telecoms
(TMT) and financial services sectors (including in other investment
companies).
Since I last reported to you on the full year results to December 2020, the
Company has continued to see the effects of the COVID-19 pandemic, however, a
positive result for the period - an operating profit of £400,000 and a net
profit after finance charges, of almost £300,000 - has been achieved. This
was due to a number of factors, including the agreement reached to sell the
Company's entire 28.7% holding in Finance Partners Group for €2.15 m
(original investment €1.9 m), revenues from management services agreements
and a reversal of some of the adverse currency movements that we suffered at
the 2020 year-end.
We still expect our investments in Greencare Capital (CBD, wellness and
medicinal cannabis) and Supply@ME Capital (monetisation of inventory) to give
us a good return once they start fulfilling their business plans, at which
point we will be seeking to exit. A similar strategy will be applied to Evrima
plc (investor in mining operations - formerly Sports Capital Group) which
reverted to mining following a foray into sports management, but whose shares
are performing reasonably well.
Nevertheless, the immediate future will focus on deriving value from a) our
two wholly-owned subsidiaries: Epsion Capital Ltd and Innovative Finance Srl
(acquired 10 May 2021), two boutique corporate finance advisories with very
different, complementary skill sets, and b) other tech led financial services
lines of business that may be developed in the future. That focus will be
led by our new CEO, David Bull, leveraging the significant increase in the
Group's balance sheet announced recently and the Company's absolute
determination to be a strong player in the financial services technical
revolution that we are now witnessing.
Dominic White
Chairman
The directors of the Company take responsibility for this announcement.
For further information, please contact:
Eight Capital Partners plc +44 20 3808 0029
Dominic White - Executive Chairman info@eight.capital
David Bull - Chief Executive Officer
AQSE Exchange Growth Market Corporate Adviser
Cairn Financial Advisers LLP +44 20 7213 0880
Jo Turner / James Lewis
Financial PR
Walbrook PR Limited +44 20 7933 8780/+44 7768 807631
Paul Vann/Nicholas Johnson Paul.vann@walbrookpr.com
Eight Capital Partners plc
Statement of Total Comprehensive Income
for the six months ended 30 June 2021
Note Six months ended Six months ended Year
30 June 2021 30 June ended
Unaudited 2020* 31 December
£'000 Unaudited 2020
£'000 Audited
£'000
Administrative expenses (174) (363) (537)
Foreign exchange gain/ (loss) 383 (116) (180)
Net change in unrealised gains/ (losses) on investments at fair value through 109 163 240
profit & loss
Other income 86 75 281
Operating Profit/ (Loss) 404 (241) (196)
Interest income - 4 22
Finance expense (105) (107) (258)
Profit/ (Loss) before tax 299 (344) (432)
Taxation - - -
Profit/ (Loss) for the period 299 (344) (432)
Other comprehensive income for the year - - -
Total comprehensive profit/ (loss) 299 (344) (432)
Basic earnings per share (pence): 2 0.02 (0.04) (0.04)
Diluted earnings per share (pence): 2 0.02 - -
*The results for the six-month period ending 30 June 2020 were restated to
correct the error of consolidating the accounts of the investment held in
Epsion Capital Limited. The results are restated to that of Eight Capital
Partners plc only.
Eight Capital Partners plc
Statement of Financial Position at 30 June 2021
Note As at As at As at
30 June 2021 Unaudited 30 June 2020* Unaudited 31 December
£'000 £'000 2020
Audited
£'000
Current assets
Trade and other receivables 164 158 153
Investments 3 5,091 4,143 3,179
Cash and cash equivalents 64 115 203
Total current assets 5,319 4,416 3,535
Total assets 5,319 4,416 3,535
Current liabilities
Trade and other payables 123 140 120
Borrowings 391 363 436
Total current liabilities 514 503 556
Non-current liabilities
Long term bond 4,381 3,742 2,945
Total non-current liabilities 4,381 3,742 2,945
Total liabilities 4,895 4,245 3,501
Net assets 424 171 34
Equity
Share Capital 4 1,453 1,431 1,431
Share premium account 2,068 2,001 2,001
Convertible loan notes 84 84 84
Share option and warrant reserve 13 8 11
Retained earnings (3,194) (3,353) (3,493)
Total equity 424 171 34
*The results for the six-month period ending 30 June 2020 were restated to
correct the error of consolidating the accounts of the investment held in
Epsion Capital Limited. The results are restated to that of Eight Capital
Partners plc only.
Eight Capital Partners plc
Statement of Changes in Equity
for the six months ended 30 June 2021
Share capital Share premium Share Convertible loan note Retained earnings Total
option reserve
& Warrant reserve
£'000 £'000 £'000 £'000 £'000 £'000
As at 1 January 2019 1,350 1,891 8 48 (2,629) 668
Loss for the year - - - - (432) (432)
Other comprehensive income for the year - - - - - -
Total Comprehensive Income - - - - (432) (432)
Issue of shares 10 4 - (14) - -
Issue of convertible loan notes - - - 50 - 50
Total Transactions with Owners 10 4 - 36 - 50
As at 31 December 2019 1,360 1,895 8 84 (3,061) 286
Loss for the year - - - - (432) (432)
Other comprehensive income for the year - - - - - -
Total Comprehensive Income - - - - (432) (432)
Share based payment - - 3 - - 3
Issue of shares 71 106 - - - 177
Total Transactions with Owners 71 106 3 - - 180
As at 31 December 2020 1,431 2,001 11 84 (3,493) 34
Profit for the period - - - - 299 299
Other comprehensive income for the year - - - - - -
Total Comprehensive Income - - - - 299 299
Share based payment - - 2 - - 2
Issue of shares 22 67 - - - 89
Total Transactions with Owners 22 67 2 - - 91
As at 30 June 2021 1,453 2,068 13 84 (3,194) 424
Eight Capital Partners plc
Notes to the Interim Financial Statements
For the six months ended 30 June 2021
1. Accounting policies
Basis of preparation
These interim financial statements have been prepared in accordance with the
principles of applicable United Kingdom accounting standards, including
Financial Reporting Standard 102 - 'The Financial Reporting Standard
applicable in the United Kingdom and Republic of Ireland' ('FRS 102').
They do not include all disclosures that would otherwise be required in a
complete set of financial statements and should be read in conjunction with
the 2020 audited annual report. The statutory financial statements for the
year ended 31 December 2020 were prepared in accordance with FRS 102 and in
accordance with the requirements of the Companies Act 2006. The auditors
reported on those financial statements; their Audit Report was unqualified.
The interim financial information is unaudited, has not been reviewed by the
Company's auditors and does not constitute statutory accounts as defined in
the Companies Act 2006.
The interim financial information was approved and authorised for issue by the
board of directors on
28 September 2021.
Going concern
As at the date of this report the Company had £420,000 of cash at bank and in
transit after repaying a sizeable tranche of its short-term debt. It has
revenues from management service agreements and interest income, a planned
share placing in the 4(th) quarter and a significant liquidity event in the
first quarter of 2022. It also has tacit financial support from its chairman.
The Directors are therefore of the opinion that the Company has adequate
financial resources to enable it to continue in operation for the foreseeable
future. For this reason, it continues to adopt the going concern basis in
preparing the financial statements.
Prior period correction
The results for the six-month period ending 30 June 2020 have been restated
such that the accounts of the investment held in Epsion Capital Limited are
not consolidated, and are therefore comparable with the current period
results. The results are restated to that of Eight Capital Partners plc only.
2. Profit or loss per share
Six months ended 30 June 2021 Six months ended 30 June 2020 Year ended
£'000 £'000 31 December 2020
£'000
Basic
Profit/ (Loss) for the period attributable to owners of the Company 299 (432)
(344)
Weighted average number of shares: 1,400,739,856 796,642,433 1,069,696,174
Basic earnings/(loss) per share (pence): 0.02 (0.04) (0.04)
Diluted
Profit/ (Loss) for the period attributable to owners of the Company 299 (432)
(344)
Weighted average number of shares: 1,674,978,200 796,642,433 1,069,696,174
Diluted earnings/(loss) per share (pence): 0.02 (0.04) (0.04)
The basic and diluted earnings per share were determined by dividing the
profit or loss attributable to the equity holders of the Company by the
weighted average number of shares outstanding during the periods.
3. Investments
Fair value Investment during the period Net change in unrealised gains/ (losses) Fair value
at at
31 December 2020 30 June 2021
£'000 £'000 £'000 £'000
Quoted equity securities:
Supply@Me Capital plc 128 - (43) 85
Greencare Capital plc 806 - (25) 781
Evrima plc (formerly Sports Capital Group plc) 131 - 50 181
1,065 - (18) 1,047
Unquoted equity securities:
Finance Partners Group SPA 1,701 - 142 1,843
Epsion Capital Limited 100 - - 100
Innovative Finance Srl 313 1,803 (15) 2,101
2,114 1,803 127 4,044
Total investments 3,179 1,803 109 5,091
4. Share capital
Movements in Ordinary share capital during the period are summarised below:
Number of Ordinary Shares of 0.01p Nominal value
£'000
As at 31 December 2020 1,341,257,818 135
Issued during the period 223,057,644 22
As at 30 June 2021 1,564,315,462 157
In May 2021, 223,057,644 new ordinary shares were issued at 0.039p per share
and admitted to trading on the AQSE Growth Market on 14 May 2021.
Movements in Deferred share capital are summarised below:
Number of Deferred Shares of 0.24p Nominal value
£'000
As at 31 December 2020 and 30 June 2021 540,166,760 1,296
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