REG - National World PLC - Results for the six month period to 30 June 2020

National WorldAnnouncement

30/09/2020 07:01

RNS Number : 4971A
  
National World PLC
  
30 September 2020
  
 

National World plc
 
("National World," or the "Company")
 
 
Results for the six month period to 30 June 2020
 
 
National World, (LSE: NWOR.L), the investment business established to create a modern platform for news publishing by implementing a new operating model powered by the latest technology, today announces its results for the six month period to 30 June 2020.
 
 
David Montgomery, Executive Chairman, said:
 
"The Covid-19 pandemic has impacted the news publishing sector, accelerating the structural impact we outlined at the time of our IPO. We remain confident in our strategy which we continue to refine in conjunction with evaluating a number of opportunities. Further updates will be provided to shareholders as appropriate."
 
 
Results for the six month period to 30 June 2020
The results for the six month period to 30 June 2020 is available on our website: https://www.nationalworld.com/investors/reports-presentations-and-publications/year/2020 
 
Excerpts of the results are set out below.
 
 
This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) NO. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of National World is Vijay Vaghela, Chief Operating Officer.
 
- Ends -
 
 
For further information please contact:



National World plc
David Montgomery
Vijay Vaghela
c/o Montfort Communications
 








Montfort Communications
Nick Miles
Olly Scott


 
 
+44 (0)78 1234 5205
 



 
 
Interim Management Report
 
I am pleased to present the Interim Report and Financial Statements for the six month period ended30 June 2020 for National World Plc (the "Company")
 
The Company has been established to pursue opportunities in the news publishing and digital media sector and/or in associated complementary technologies. Our objective is to create a modern platform for news publishing by implementing a new operating model powered by the latest technology.
 
National World will jettison legacy systems and archaic industrial practices to create efficient dissemination of news and to monetise it by matching content to audience.
 
The Company has continued to progress with efforts towards identifying suitable assets for acquisition. Whilst the Company has been engaged on a number of potential acquisitions during the period, no acquisitions or investments have progressed to a stage where exclusivity has been granted. Progress has been impacted by the uncertainty created by the COVID-19 outbreak which has adversely impacted news publishing businesses. 
 
The impact of COVID 19 on the news publishing sector further highlights the importance and urgent need for a transformation of the industry with a new operating model and increased collaboration. We continue to explore a range of opportunities despite a rapidly changing situation. 
 
The Company incurred a loss for the six month period ended 30 June 2020 of £118,177 from the on-going administrative expenses required to operate the Company. The Board continues to tightly manage ongoing operating costs. 
 
The Group had a cash balance of £4,312,865 and net assets of £4,324,871 as at 30 June 2020.
 
Since December 2019, the Company's Ordinary Shares have been suspended from trading on the Main Market of the LSE as the Company was considering a potential acquisition. The shares remain suspended as the directors continue to work on potential acquisitions and look forward to presenting a value enhancing opportunity for consideration by shareholders. 
 
All statements other than historical facts are forward-looking statements and the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. There are a number of potential risks and uncertainties which may have material impact on the Company's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider that there are any changes to the principal risks and uncertainties since the publication of the 2019 Annual Report and Accounts which are available on the Company's website at www.nationalworld.com. 
 
David Montgomery
Executive Chairman
30 September 2020
 
 
Statement of Comprehensive Income
For the six months ended 30 June 2020
 







Note


Unaudited 
Six months to 30 Jun 20


Unaudited 
29 May 2019
 to 30 Jun 19


Audited
29 May 19 to 31 Dec 19












£


£


£




Continuing operations




















Non-recurring costs to establish National World


5


-


-


(87,615)




Listing expenses


6


-


-


(81,268)




Administrative expenses


7


(127,900)


-


(167,392)




Operating loss






(127,900)


-


(336,275)


























Finance income


8


9,723


-


1,208




Loss before tax






(118,177)


-


(335,067)


























Taxation 






-


-


-




Total comprehensive loss for the period attributable to the equity owners






(118,177)


-


(335,067)


























Loss per share




















Basic and diluted 


9


(0.002)


(0.00)


(0.012)



 
The above results were derived from continuing operations.
 
The notes form part of these Interim Financial Statements. 
 
 
Statement of Financial Position
As at 30 June 2020
 



Company Number: 12021298


Note


 Unaudited 
As at 
30 Jun 20


 Unaudited 
As at 
 30 Jun 19


 Audited 
As at 
 31 Dec 19












£


£


£




ASSETS




















Current assets




















Trade and other receivables


10


40,396


100


127,628




Cash and cash equivalents


11


4,312,865


-


4,383,077




Total current assets






4,353,261


100


4,510,705


























Total assets






4,353,261


100


4,510,705


























LIABILITIES




















Current liabilities




















Trade and other payables


12


28,390


-


67,657




Total current liabilities






28,390


-


67,657


























Total liabilities






28,390


-


67,657


























NET ASSETS






4,324,871


-


4,443,048


























EQUITY




















Share capital 


13


54,000


100


54,000




Share premium


14


4,724,115


-


4,724,115




Accumulated losses


14


(453,244)


-


(335,067)




TOTAL EQUITY 






4,324,871


100


4,443,048



 
The Interim Report and Financial Statements were approved by the Board of Directors and authorised for issue on 30 September 2020.
 
David Montgomery
Executive Chairman
 
 
The notes form part of these Interim Financial Statements.
 
 
Statement of Changes in Equity
For the six months ended 30 June 2020
 







Share Capital


Share Premium


Accumulated Losses


Total Equity








£


£


£


£




As at 29 May 2019


-


-


-


-




Transactions with owners




















Issue of ordinary shares


100


-


-


100




As at 30 June 2019


100


-


-


100






























Share Capital


Share Premium


Accumulated Losses


Total Equity








£


£


£


£


























As at 30 June 2019


100


-


-


100




Comprehensive income 




















Loss for the period


-


-


(335,067)


(335,067)




Transactions with owners




















Issue of ordinary shares and subdivision of shares


53,900


5,046,000


-


5,099,900




Cost to issue shares


-


(321,885)


-


(321,885)




As at 31 December 2019


54,000


4,724,115


(335,067)


4,443,048






























Share Capital


Share Premium


Accumulated Losses


Total Equity








£


£


£


£




As at 31 December 2019


54,000


4,724,115


(335,067)


4,443,048




Comprehensive income 




















Loss for the period


-


-


(118,177)


(118,177)




As at 30 June 2020 


54,000


4,724,115


(453,244)


4,324,871



 
The notes form part of these Interim Financial Statements.
 
 
Statement of Cash Flows
For the six months ended 30 June 2020
 







Note


Unaudited
Six months to 30 Jun 20


Unaudited
29 May 19 to 30 Jun 19


Audited
29 May 19 to 31 Dec 19












£


£


£




Cash flow from operating activities




















Operating loss






(127,900)


-


(336,275)




Cash outflow from operating activities






(127,900)


-


(336,275)


























Changes in working capital




















Decrease/(Increase) in trade and other receivables


10


87,232


-


(127,628)




(Decrease)/Increase in trade and other payables


12


(39,267)


-


67,657




Net cash used in operating activities






(79,935)


-


(396,246)


























Cash flows from investing activities




















Interest received


8


9,723


-


1,208




Net cash generated from investing activities






9,723


-


1,208


























Cash flows from financing activities




















Proceeds from issue of shares, net of issue costs






-


-


4,778,115




Net cash generated from financing activities






-


-


4,778,115


























Net (decrease)/increase in cash and cash equivalents






(70,212)


-


4,383,077




Cash and cash equivalents at the beginning of the period 






4,383,077


-


-




Cash and cash equivalents at the end of the period






4,312,865


-


4,383,077



 
The notes form part of these Interim Financial Statements.
 
 
Notes to the Interim Financial Statements 
 
1. Company information
National World PLC (the "Company") is a public company listed on the London Stock Exchange in England and Wales. The Company is domiciled in England and its registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, United Kingdom, EC4Y 0DT.
 
The principal activity of the Company is that of identifying and acquiring investment projects.
 
The Company was incorporated on 29 May 2019 and the first audited financial statements for the Company were for the period 29 May 2019 to 31 December 2019. Therefore, the comparative results for the 2019 interim financial results cover the period from 29 May 2019 to 30 June 2019. 
 
 
2. Accounting policies 
2.1 Basis of preparation 
These financial statements of the Company have been prepared on a going concern basis in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) and adopted by the European Union, in accordance with the Companies Act 2006. 
 
Measurement bases
The financial statements have been prepared under the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for assets. 
 
The preparation of the financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates and management judgements in applying the accounting policies. The significant estimates and judgements that have been made and their effect is disclosed in note 3.
 
2.2 Going concern 
The Company had £4,312,865 cash as at 30 June 2020 and ongoing operational costs of c£300,000 per annum providing significant headroom to fund costs associated with evaluating acquisitions and investments, including due diligence. On this basis, the Board considers the company to have sufficient resources to remain in operational existence for the foreseeable future.
 
2.3. Significant accounting policies  
The accounting policies adopted are consistent with those followed in the preparation of the Annual Report and Accounts of the Company for the year ended 31 December 2019. A copy of the Annual Report and Accounts is available on the Company's website at https://www.nationalworld.com/.
 
 
3. Significant judgments and estimates
The preparation of the Company's financial statements under IFRS as endorsed by the EU requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the statement of financial position date, amounts reported for revenues and expenses during the period, and the disclosure of contingent liabilities, at the reporting date.
 
Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
 
The Directors consider that there are no critical accounting judgements or estimates relating to the financial information of the Company.
 
 
4. Loss before income tax
The loss before income tax is stated after charging:
 







Unaudited
Six months
to 30 Jun 20


Unaudited
29 May 19
to 30 Jun 19


Audited
29 May 19
to 31 Dec 19








£


£


£




Fees payable to the Company's auditors - audit of the Company's annual accounts


9,000


-


18,000




Fees payable to the Company's auditors - non-statutory audit in relation to the Company's re-registration as a plc.


-


-


2,500




Fees payable to the Company's auditors - Reporting Accountant fees


-


-


15,000



 
 
5. Non-recurring costs to establish National World
The Company incurred costs of £87,615 in the second half of 2019 which were considered to be one-off to establish National World Plc, therefore these costs were disclosed separately in the Statement of Comprehensive Income in the year ended 31 December 2019. 
 
 
6. Listing Expenses
During the second half of 2019, the Company incurred £81,286 in IPO costs and other fees which were disclosed separately in the Statement of Comprehensive Income in the year ended 31 December 2019.
 
 
7. Analysis of expenses by nature
The breakdown by nature of administrative expenses is as follows:
 







Unaudited
Six months to
30 Jun 20


Unaudited
29 May 19
to 30 Jun 19


Audited
29 May 19
to 31 Dec 19








£


£


£




Staff costs 


9,500


-


4,750




Accounting fees


12,800


-


8,000




Audit fees


9,000


-


18,000




Professional fees


18,400


-


97,577




Other costs, including financial PR, insurance, and other fees 


78,200


-


39,065




Total administrative expenses 


127,900


-


167,392



 
 
8. Finance income 
 







Unaudited
Six months
to 30 Jun 20


Unaudited
29 May 19
 to 30 Jun 19


Audited
29 May 19
to 31 Dec 19








£


£


£




Bank interest


9,723


-


1,208




Total finance income


9,723


-


1,208



 
 
9. Loss per share
The loss per share has been calculated using the loss for the period and the weighted average number of ordinary shares entitled to dividend rights which were outstanding during the period, as follows:
 







Unaudited
Six months
to 30 Jun 20


Unaudited
29 May 19
to 30 Jun 19


Audited
29 May 19
to 31 Dec 19








£


£


£




Loss for the period attributable to equity holders of the Company 


(118,177)


-


(335,067)




Weighted average number of ordinary shares


54,000,000


100


26,813,426




Loss per share


(0.002)


-


(0.012)



 
 
10. Trade and other receivables
 







Unaudited
30 Jun 20


Unaudited
30 Jun 19


Audited
31 Dec 19








£


£


£




Amounts falling due within one year:
















Prepayments


27,764


-


41,863




Other receivables


12,632


100


85,765








40,396


100


127,628



 
The Directors consider that the carrying amount of trade and other receivables is approximately equal to their value.
 
Other receivables comprise VAT due on expenses.
 
 
11. Cash and cash equivalents
 







Unaudited
30 Jun20


Unaudited
30 Jun 19


Audited
31 Dec 19








£


£


£




Cash at bank 


4,312,865


-


4,383,077








4,312,865


-


4,383,077



 
All bank balances are denominated in pounds sterling with £4.2 million held on a term deposit with Barclays Bank plc which requires 30 days' notice for any withdrawal.
 
 
12. Trade and other payables
 







Unaudited
30 Jun 20


Unaudited
30 Jun 19


Audited
31 Dec 19








£


£


£




Amounts falling due in one year:
















Other taxation and social security


329


-


699




Trade payables


2,361


-


31,969




Other payables


-


-


1,234




Accruals 


20,700


-


33,755








23,390


-


67,657



 
 
13. Share capital
 







Number of Shares


Share Capital
£


Share premium
£




Issued and fully paid Ordinary shares of £1 each
















At 30 June 2019


100


100


-




Issued and fully paid Ordinary shares of 0.1 pence each
















At 31 December 2019


54,000,000


54,000


4,724,115




At 30 June 2020


54,000,000


54,000


4,724,115



 
The Company was incorporated on 29 May 2019. On incorporation, 100 ordinary shares of £1 per par value were issued at par. On 22 July 2019, the Company performed a share subdivision to split the existing 100 ordinary shares into 100,000 ordinary shares. The new par value of the shares was 0.1p.
 
On 25 July 2019, a further 1,700,000 ordinary shares of 0.1p were issued at 2.64p for a cash consideration of £44,900 and 2,200,000 ordinary shares of 0.1p were issued at 2.5p for a cash consideration of £55,000. 
 
On 19 September 2019, 50,000,000 ordinary shares of 0.1p were issued at 10p, this totalled further cash consideration of £5,000,000.
 
The holders of ordinary shares are entitled to one voting right per share and are entitled to dividends out of the profits of the Company available for distribution. 
 
 
14. Reserves
Share premium
Includes all premiums in excess of the nominal value of shares received on issue of share capital.
 
Accumulated losses
Includes all losses incurred since incorporation.                
 
 
15. Related party transactions
The related parties are considered to be the Directors who each have shares on the Company. Their remuneration is as follows:
 







Unaudited
Six months
to 30 Jun 20


Unaudited
29 May 19
 to 30 Jun 19


Audited
29 May 19
to 31 Dec 19








£


£


£




Directors emoluments, including salary and fees:
















D Montgomery


2,500


-


1,250




V Vaghela


2,500


-


1,250




M Hollinshead


1,500


-


750




J Rowe


1,500


-


750




S Barber


1,500


-


750








9,500


-


4,750



 
 
16. Contingent Liabilities 
The Company has agreed that it will pay its former solicitors, Cooley LLP, £90,000 if the Company completes an acquisition. As this is wholly contingent on an acquisition being made, a liability has not been recognised at 30 June 2020. 
 
 
17. Ultimate controlling party 
The Company has no ultimate controlling party. 

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