REG - Highway Capital PLC - Half-year Report
01/12/2021 07:00
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RNS Number : 0662U Highway Capital PLC 01 December 2021
HIGHWAY CAPITAL PLC
INTERIM REPORT 2021
Chairman's Statement
Dear Fellow Shareholders
The first half of 2021 was very optimistic for the Company. The Board has
continued its dialogue with both the regulator and potential target company.
As a results, Highway Capital Plc has entered into Heads of Terms with
Guinevere Capital Esports & Entertainment, as per the announcement made on
11 October 2021 and is currently working on the listing particulars. I hope
that the Board will soon be able to update the shareholders on the progress of
the Reverse Takeover transaction.
The results for the six months ended 31 August 2021 showed a loss before tax
of £136,000 (six months ended 31 August 2020: £148,000 loss; year ended 28
February 2021: £135,000 loss).
No dividend has been declared.
Dr L Sobolewski
Chairman
30 November 2021
Update on Capital Structure
The Board of Highway Capital Plc ("HWC" or "Company") announces the following
update on its share capital and convertible loans.
Shares in issue
There are currently 11,490,201 ordinary shares of 2p each.
Convertible Loan Notes - Current Financial Year
Between 13 July 2021 and 30 November 2021, the Company completed a placing of
£278,000 Convertible Loan Notes for working capital purposes. The notes
have a term of 5 years and are convertible into new shares in the Company.
The Convertible Loan Note issued 13 July 2021 for the amount of £200,000 to
an unconnected investor has a conversion price of 5p per new ordinary share
and has base interest of 10% for the remainder of 2021 moving to 12% interest
per annum from 1 January 2022.
The Convertible Loan Note issued 5 October 2021 for the amount of £3,000 to
an unconnected investor has a conversion price of 5p per new ordinary share
and 5% interest per annum.
The Convertible Loan Note issued 24 November 2021 for the amount of £75,000
to an unconnected investor has a conversion price of 5p per new ordinary share
and 5% interest per annum.
Key Risks and Uncertainties
Foreign currencies: The company deals in a variety of foreign currencies:
Continual review of foreign currency movements to ensure company undertakes
transactions in the most financially beneficial currency and ensuring the
company is not overly exposed in one currency.
Brexit: Changing legislative environment between post Brexit UK and EU may
place additional regularity burdens on the company which make it more
difficult to operate with EU based companies to investments with Europe:
Reviewing strategies to monitor and address the Brexit negotiations and
outcomes.
Covid-19: The Pandemic may impact the Company's ability to execute an
acquisition. However, the Directors will review, on an ongoing basis, the
options for the Company, including raising additional funds.
Statement of comprehensive income 6 months ended 6 months ended Year ended
31 August 2021 31 August 2020 28 February 2021
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Management fees - - 165
Administrative expenses (136) (148) (299)
Operating loss 2 (136) (148) (135)
Interest receivable - - -
Amounts written back/(off) investments and loans
- - -
Profit/(loss) on ordinary activities before taxation (136) (148) (135)
Tax on profit or loss on ordinary activities - - -
Profit/(loss) for financial period and total comprehensive income (136) (148) (135)
Basic profit/(loss) per share 3 (1.19)p (1.29)p (1.17)p
Diluted profit/(loss) per share 3 (1.19)p (1.29)p (1.17)p
Basic profit/(loss) per share from continuing operations
3 (1.19)p (1.29)p (1.17)p
Diluted profit/(loss) per share from continuing operations
3 (1.19)p (1.29)p (1.17)p
Statement of financial position 31 August 2021 31 August 2020 28 February 2021
Notes (unaudited) (unaudited) (audited)
£'000 £'000 £'000
Fixed assets - - -
Investments - - -
Current assets
Debtors 28 11 17
Cash at bank and in hand 157 75 41
185 86 58
Creditors: amounts falling due within one year
(781) (759) (718)
Net current assets/(liabilities) (596) (673) (660)
Total assets less current liabilities (596) (673) (660)
Creditors: amounts falling due after more than one year 5
(666) (466) (466)
Net assets/(liabilities) (1,262) (1,139) (1,126)
Capital and reserves
Share capital 6 230 230 230
Share premium 475 475 475
Profit and loss account (1,967) (1,844) (1,831)
Total equity shareholders' funds/(deficit) (1,262) (1,139) (1,126)
Statement of changes in equity 6 months ended 6 months ended Year ended
31 August 2021 31 August 2020 28 February 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit/(loss) attributable to ordinary shareholders
(136) (148) (135)
Issue of new ordinary shares less costs - - -
Net increase/(decrease) in shareholders' funds
(136) (148) (135)
Opening Shareholders' funds/(deficit) (1,126) (991) (991)
Closing Shareholders' funds/(deficit) (1,262) (1,139) (1,126)
Statement of cash flows 6 months ended 6 months ended Year ended
31 August 2021 31 August 2020 28 February 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Profit/(loss) for the period
(136) (148) (135)
Adjustments for:
Interest receivable - - -
Amounts written back on investments and loans
- - -
Amounts written off investments and loans
- - -
Changes in:
Trade and other debtors (11) (4) (11)
Trade and other creditors 62 (4) 4
Net cash from operating activities (85) (156) (142)
Cash flows from investing activities
Interest received - - -
Net cash used in investing activities - - -
Cash flows from financing activities
Issue of new equity (net of costs) - - -
Proceeds from loans to company 200 294 409
Repayment and conversion of loans to company - (63) (228)
Net cash from financing activities 200 231 181
Net increase/(decrease) in cash and cash equivalents 115 75 39
Cash and cash equivalents at beginning of period 37 (3) (2)
Cash and cash equivalents at end of period 152 72 37
Notes to the Interim Report
1. Basis of preparation of the interim report
The condensed set of financial statements for the six months ended 31 August
2021 has been prepared on a basis consistent with the financial statements for
the year ended 28 February 2021.
The condensed set of financial statements for the six months ended 31 August
2021 has not been audited or reviewed by the auditors pursuant to the Auditing
Practices Board guidance on Review of Interim Financial Information.
The comparative financial information for the year ended 28 February 2021 has
been extracted from the audited financial statements, on which the auditors
issued an unqualified audit report, and which have been delivered to the
Registrar of Companies.
The financial information contained in the interim statement does not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006.
There are no acquired or discontinued operations in the relevant financial
periods.
There are no recognized gains or losses other than the profit or loss for the
relevant financial periods.
Highway Capital plc is a stand-alone company and does not prepare consolidated
accounts. It has therefore continued to prepare its accounts in accordance
with UK rather than international accounting standards.
2. Operating loss
This is stated after charging:
6 months ended 6 months ended Year ended
31 August 2021 31 August 2020 28 February 2021
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Directors' remuneration
- salaries and fees 48 48 96
Auditors' remuneration
- audit services 10 6 15
- other services - - -
3. Profit/(loss) per share
The profit/(loss) per ordinary share calculation has been based on the loss
attributable to ordinary shareholders of £136,000 (August 2020: loss
£148,000; February 2021: loss £135,000), divided by 11,490,201 (August 2020:
11,490,201; February 2021: 11,490,201) being the weighted average number of
ordinary shares in issue during the period. There is no difference between
the basic and the diluted loss per ordinary share, as any adjustment would be
anti-dilutive.
There are no discontinued operations in the periods and, therefore the basic
and the diluted profit/(loss) per ordinary share from continuing operations
are the same as the basic and the diluted profit/(loss) per ordinary share.
4. 2021 interim dividend
No interim dividend has been declared.
5. Creditors: due after more than one year
The creditor due after more than one year of £666,000 (August 2020:
£466,000; February 2021: £466,000), is made up of the following: (a) £4,000
from B Patnaik, a director, and £1,000 from institutional investors (these
loans are unsecured, repayable after two years, and bearing interest at a rate
of 5% per annum); and (b) £27,000 from B Patnaik, a director, £70,000 from D
Zych, a shareholder and former director, £564,000 from institutional
investors (these loans are unsecured, repayable after five years, convertible
at the holder's request into new ordinary shares in the company at a price of
5 or 10 pence per share; in the event that the loan is not repaid or converted
prior to its maturity date then it will attract accrued interest at a rate of
5% per annum); and £200,000 from an institutional investor which is
unsecured, repayable after five years, convertible at the holder's request
into new ordinary shares in the company at a price of 5 pence per share; and
accrues interest of £20,000 up to 31 December 2021 and at a rate of 12% per
annum thereafter.
6. Share capital
31 August 2021 31 August 2020 28 February 2021
(unaudited) (unaudited) (audited)
Ordinary shares of 2p each
Allotted, called-up, fully paid
Number of shares 11,490,201 11,490,201 11,490,201
Nominal value £229,804 £229,804 £229,804
7. Related party transactions
As at the balance sheet date, there are loans to the company of £31,000 from
B Patnaik, a director of the company, and £255,000 from N Mayster, a director
and shareholder of the company. The terms of the loans are interest at 5%
and this is considered reasonable.
No other related party transactions were undertaken as such that are required
to be disclosed under FRS 102.
8. Responsibility statement
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements has been prepared
in accordance with FRS 104 Interim Financial Reporting issued by the Financial
Reporting Council;
(b) the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events during the
first six months and their impact on the financial statements and description
of principal risks and uncertainties for the remaining six months of the
year); and
(c) the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related party transactions
and changes therein).
By order of the Board
Dr L
Sobolewski
M Szytko
Chairman
Non-Executive Director
9. Publication
Copies of this statement will be available on the company's website at
www.highwaycapital.co.uk (http://www.highwaycapital.co.uk) .
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