Interim results
16/08/2023 07:00
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RNS Number : 4297J NFT Investments PLC 16 August 2023
Press Release
16 August 2023
The information contained within this announcement is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014, as retained as part of the law of England and Wales. Upon
the publication of this announcement via the Regulatory Information Service,
this inside information is now considered to be in the public domain.
NFT Investments PLC
("NFT Investments" or "the Company"")
Interim results
NFT Investments PLC (AQSE: NFT), an investment firm, announces its unaudited
results for the six months ended 30 June 2023.
Comments from Jonathan Bixby, Executive Chairman of NFT Investments:
I am delighted to report the Company's interim results for the six months
ended 30 June 2023.
The Company had a net asset value of £33.983 million (3.37p per share).
This is an increase of £8.953m (35.9%) in the six month reporting period.
I am extremely proud of our investment discipline throughout the "crypto
winter". This discipline is now starting to pay off as crypto starts to rise
ahead of the halving event in April 2024. We remain committed to returning
capital to investors and have successfully accomplished the reduction of the
Company's share capital by way of cancellation of its share premium account
announced on 20 July 2023. We remain very bullish on the medium-term crypto
market.
Finally, we believe that the Company's strong position and the value of its
assets are not fairly reflected in the share price. The Company's share price
on 15 August 2023 of 1.65p represents a 51% discount to our 30 June 2023 net
asset value.
I would like to take this opportunity to thank all our shareholders for their
ongoing support.
Jonathan Bixby, Executive Chairman
The Directors of NFT Investments accept responsibility for this announcement.
This announcement may contain "forward-looking" statements and information
relating to the Company. These statements are based on the beliefs of Company
management, as well as assumptions made by and information currently available
to Company management. The Company does not undertake to update
forward‐looking statements or forward‐looking information, except as
required by law.
For further information please contact:
NFT Investments
Jonathan Bixby +44 7876 888 011
Executive Chairman
First Sentinel
Corporate Adviser +44 7876 888 011
Brian Stockbridge
Tennyson Securities
Corporate Broker +44 207 186 9030
Peter Krens
About NFT Investments:
NFT Investments PLC is an investment company specialising in the market for
non-fungible tokens ("NFTs") and is the first ever NFT vehicle to list in a
major jurisdiction worldwide. The Company invests in a diversified portfolio
of NFTs, cryptocurrency, and/or in companies or funds which have exposure to
NFT or blockchain technology. The Company's leadership team have an extensive
track record in the cryptocurrency sector and previously founded Argo
Blockchain PLC, a global crypto miner. NFT Investments is headquartered in
London, UK and its shares are listed on the Aquis Stock Exchange Growth Market
under the ticker symbol NFT. https://www.nftinvest.pro/
(https://www.nftinvest.pro/)
NFT Investments plc
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
Unaudited Audited
Six months ended 30 June Year ended 31 December
Note 2023 2022 2022
£ £ £
Revenue - - -
Loss on disposal of digital assets and tokens (25,554) (65,548)
Fair valuation movements (including impairment and exchange differences) in (318,593) (2,686,079)
investments
96,875
Fair valuation movements (including exchange differences) in digital assets (5,465,486)
and tokens
10,082,738 (4,060,615)
9,738,591 (3,963,740) (8,217,113)
Share based payment 3 (262,600) - -
Administrative expenses (805,286) (705,157) (1,556,872)
Operating Profit/(Loss) 8,670,705 (4,668,897) (9,773,985)
Finance income - 448,891 402,083
Profit/(Loss) before and after taxation and total comprehensive profit/(loss) (4,220,006) (9,371,902)
for the period
8,670,705
Profit/(Loss) per ordinary share:
Basic profit/(loss) per share on loss for the year 4 0.86 (0.42) (0.93)
Diluted profit/(loss) per share on loss for the year 4 0.86 (0.42) (0.93)
NFT Investments plc
Consolidated Statement of Financial Position
For the six months ended 30 June 2023
Unaudited Audited
Year ended 31 December
Six months ended 30 June
Note 2023 2022 2022
£ £ £
Non-Current Assets
Intangible assets 5 27,786,002 3,208,708 15,448,382
Investments 6 3,372,592 6,474,140 3,691,186
Total non-current assets 31,158,594 9,682,848 19,139,568
Current Assets
Trade and other receivables 128,265 171,406 125,765
Cash and cash equivalents 2,782,870 20,412,854 5,847,274
Total current assets 2,911,135 20,584,260 5,973,039
Total assets 34,069,729 30,267,108 25,112,607
Shareholders' equity
Share capital 1,007,000 1,003,000 1,003,000
Share premium 33,359,133 33,323,133 33,323,133
Share based payments reserve 3,188,508 2,925,908 2,925,908
Retained earnings (3,570,952) (7,089,761) (12,241,657)
Total shareholders' equity 33,983,689 30,162,280 25,010,384
Current Liabilities
Trade and other 86,040 104,828 102,223
payables
Total liabilities 86,040 104.828 102,223
Total equity and liabilities 34,069,729 30,267,108 25,112,607
NFT Investments plc
Company Statement of Financial Position
For the six months ended 30 June 2023
Unaudited Audited
Year ended 31 December
Six months ended 30 June
Note 2023 2022 2022
£ £ £
Non-Current Assets
Intangible assets 5 27,786,002 3,208,708 15,448,382
Investments 6 3,372,593 6,474,140 3,691,187
Total non-current assets 31,158,595 9,682,848 19,139,569
Current Assets
Trade and other receivables 1,910,337 171,406 157,837
Cash and cash equivalents 1,000,797 20,412,854 5,815,201
Total current assets 2,911,134 20,584,260 5,973,038
Total assets 34,069,729 30,267,108 25,112,607
Shareholders' equity
Share capital 1,007,000 1,003,000 1,003,000
Share premium 33,359,133 33,323,133 33,323,133
Share based payments reserve 3,188,508 2,925,908 2,925,908
Retained earnings (3,570,952) (7,089,761) (12,241,657)
Total shareholders' equity 33,983,689 30,162,280 25,010,384
Current Liabilities
Trade and other 86,040 104,828 102,223
payables
Total liabilities 86,040 104.828 102,223
Total equity and liabilities 34,069,729 30,267,108 25,112,607
NFT Investments plc
Consolidated and Company Statement of Changes in Equity
As at 30 June 2023
Share-based payments reserve
Share capital Share Premium Retained earnings
Total
£ £ £ £ £
Unaudited
Six months ended 30 June 2023
At 1 January 2023 1,003,000 33,323,133 2,925,908 (12,241,657) 25,010,384
Profit for the period and total comprehensive profit - - - 8,670,705 8,670,705
Shares issued during the period 4,000 36,000 - - 40,000
Share based payment - - 262,600 - 262,600
33,983,689
At 30 June 2023 1,007,000 33,359,133 3,188,508 (3,570,952)
Unaudited
Six months ended 30 June 2022
At 1 January 2022 1,003,000 33,323,133 2,925,908 (2,869,755) 34,382,286
Loss for the year and total comprehensive loss - - - (4,220,006) (4,220,006)
At 30 June 2022 1,003,000 33,323,133 2,925,908 (7,089,761) 30,162,280
Audited
Year ended 31 December 2022
At 1 January 2022 1,003,000 33,323,133 2,925,908 (2,869,755) 34,382,286
Loss for the year and total comprehensive loss - - - (9,371,902) (9,371,902)
At 31 December 2022 1,003,000 33,323,133 2,925,908 (12,241,657) 25,010,384
(1) There were no transactions in the Subsidiary and thus no impact on the
Statement of Changes in Equity
NFT Investments plc
Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
Audited
Unaudited
Six months ended 30 June Year ended 31 December
2023 2022 2022
£ £ £
Operating activities
Profit/(loss) for the year 8,670,705 (4,220,006) (9,371,902)
Adjustments:
25,554 - 65,548
Loss on disposal of digital assets and tokens
(Profit)/loss on revaluation of digital assets and tokens (11,235,686) 265,080 7,477,130
Loss on valuation of investments 2,258,239 4,309,208 2,258,239
Amortisation of software development costs 28,750 - -
Share based payments 262,600 - -
Foreign exchange (1,051,158) (361,955) (475,901)
Finance Income - (448,891) (402,083)
Working capital adjustments:
Increase in trade and other receivables (2,500) (45,641) -
Decrease in trade and other payables (16,183) (19,599) (22,204)
Net cash used in operating activities (1,059,679) (521,804) (471,173)
Investing activities
Purchase of digital assets and tokens (3,174,552) (600,000) (15,949,540)
Purchase of fixed assets investments - (817,957) (817,958)
Sale of intangible fixed assets 1,129,827 - 780,138
Interest received - 448,891 402,083
Net cash used in investing activities (2,044,725) (969,066) (15,585,277)
Financing activities
Share issue 40,000 - -
Net cash from financing activities 40,000 - -
Net decrease in cash and cash equivalents (3,064,404) (1,490,870) (16,056,450)
Cash and cash equivalents at start of year 5,847,274 21,903,724 21,903,724
Cash and cash equivalents at end of year 2,782,870 20,412,854 5,847,274
NFT Investments plc
Company Statement of Cash Flows
For the six months ended 30 June 2023
Audited
Unaudited
Six months ended 30 June Year ended 31 December
2023 2022 2022
£ £ £
Operating activities
Profit/(loss) for the year 8,670,705 (4,220,006) (9,371,902)
Adjustments:
25,554 - 65,548
Loss on disposal of digital assets and tokens
(Profit)/loss on revaluation of digital assets and tokens (11,235,686) 265,080 7,477,130
Loss on valuation of investments 2,258,239 4,309,208 2,258,239
Amortisation of software development costs 28,750 - -
Share based payments 262,600 - -
Foreign exchange (1,051,158) (361,955) (475,901)
Finance Income - (448,891) (402,083)
Working capital adjustments:
Increase in trade and other receivables (1,752,500) (45,641) (32,072)
Decrease in trade and other payables (16,183) (19,599) (22,204)
Net cash used in operating activities (2,809,679) (521,804) (503,245)
Investing activities
Purchase of digital assets and tokens (3,174,552) (600,000) (15,949,540)
Purchase of fixed assets investments - (817,957) (817,959)
Sale of intangible fixed assets 1,129,827 - 780,138
Interest received - 448,891 402,083
Net cash used in investing activities (2,044,725) (969,066) (15,585,278)
Financing activities
Share issue 40,000 - -
Net cash from financing activities 40,000 - -
Net decrease in cash and cash equivalents (4,814,404) (1,490,870) (16,088,523)
Cash and cash equivalents at start of year 5,815,201 21,903,724 21,903,724
Cash and cash equivalents at end of year 1,000,797 20,412,854 5,815,201
Notes to the Interim Financial Statements for the six months ended 30 June
2023
1. Basis of preparation
The interim results of NFT Investments plc are prepared in accordance with the
requirements of IAS 34 Interim Financial Reporting and are prepared in
accordance with the accounting policies set out in the last financial
statements for the year ended 31 December 2022. NFT Investments plc expects to
apply the same policies in its financial statements for the year ending 31
December 2023.
The financial information for the six months ended 30 June 2023 and for the
six months ended 30 June 2022 have neither been audited nor reviewed by the
Company's auditors. The comparative financial information for the year ended
31 December 2022 has been derived from the audited financial statements for
that period.
Basis of Consolidation
Where the Company has control over an investee, it is classified as a
subsidiary. The Company controls an investee if all three of the following
elements are present: power over the investee, exposure to variable returns
from the investee, and the ability of the investor to use its power to affect
those variable returns. Control is reassessed whenever facts and circumstances
indicate that there may be a change in any of these elements of control.
The consolidated financial statements present the results of the Company and
its subsidiaries as if they formed a single entity. Intercompany transactions
and balances between group companies are therefore eliminated in full. All
subsidiaries have a reporting date of December.
The consolidated financial statements incorporate the results of business
combinations using the acquisition method. In the statement of financial
position, the acquiree's identifiable assets, liabilities and contingent
liabilities are initially recognised at their fair values at the acquisition
date. The results of acquired operations are included in the consolidated
statement of comprehensive income from the date on which control is obtained.
They are deconsolidated from the date on which control ceases.
On consolidation, the results of overseas operations are translated into
pounds sterling at rates approximating to those ruling when the transactions
took place. All assets and liabilities of overseas operations, including
goodwill arising on the acquisition of those operations, are translated at the
rate ruling at the reporting date.
Exchange differences arising on translating the opening net assets at opening
rate and the results of overseas operations at actual rate are recognised in
other comprehensive income and accumulated in the foreign exchange reserve.
Exchange differences recognised in profit or loss in Group entities' separate
financial statements on the translation of long-term monetary items forming
part of the Group's net investment in the overseas operation concerned are
reclassified to other comprehensive income and accumulated in the foreign
exchange reserve on consolidation.
On disposal of a foreign operation, the cumulative exchange differences
recognised in the foreign exchange reserve relating to that operation up to
the date of disposal are transferred to the consolidated statement of
comprehensive income as part of the profit or loss on disposal.
Profit/(loss) of Parent Company
As permitted by Section 408 of the Companies Act 2006, the statement of
comprehensive income of the Parent Company is not presented as part of these
financial statements. The Parent Company's profit/(loss) for the financial
period was £8,670,705 (period ending 30 June 2022: (£4,220,006) and year
ended 31 December 2022: (£9,371,902).
2. Critical accounting estimates and judgements
The preparation of the financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts in the
financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue
and expenses. Management bases its judgements, estimates and assumptions on
historical experience and on other various factors, including expectations of
future events, management believes to be reasonable under the circumstances.
The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are discussed below.
Investments
On acquisition, investments are valued at cost as this is deemed to be the
fair value. Subsequent to this, management uses valuation techniques and other
relevant information to determine the fair value of financial instruments
(where active market quotes are not available) and non-financial assets. This
involves developing estimates and assumptions consistent with how market
participants would price the instrument. Management bases its assumptions on
observable data as far as possible but this is not always available. In that
case management uses the best information available. Estimated fair values may
vary from the actual prices that would be achieved in an arm's length
transaction at the reporting date.
At each balance sheet date, a review of impairment in value is undertaken and
the Company follows the guidance of IFRS 9 to determine when a financial asset
is impaired. This determination requires significant judgement. In making this
judgement, management evaluates, among other factors, the duration and extent
to which the fair value of an investment is less than its cost, and the
financial health of, and short-term business outlook for, the investee,
including factors such as industry and sector performance, changes in
technology and operational, financing cash flow and proposed fundraising.
3. Share based payments
The Company operates a number of equity-settled, share-based compensation
plans, under which the entity receives services from employees as
consideration for equity instruments (options) of the Company. The fair value
of the employee services received in exchange for the grant of options is
recognised as an expense. The total amount to be expensed is determined by
reference to the fair value of the options granted:
• including any market performance conditions;
• excluding the impact of any service and non-market
performance vesting conditions (for example, profitability, sales growth
targets and remaining an employee of the entity over a specified time period);
and
• excluding the impact of any non-vesting conditions (for
example, the requirement of employees to save).
Assumptions about the number of options that are expected to vest include
consideration of non-market vesting conditions. The total expense is
recognised over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied. At the end of each reporting
period, the entity revises its estimates of the number of options that are
expected to vest based on the non-market vesting conditions. It recognises the
impact of the revision to original estimates, if any, in the Statement of
Comprehensive Income, with a corresponding adjustment to equity.
When the options are exercised, the Company issues new shares. The proceeds
received net of any directly attributable transaction costs are credited to
share capital (nominal value) and share premium when the options are
exercised.
4. Profit/(loss) per ordinary share
The calculation of a basic profit/(loss) per share is based on the
profit/(loss) for the period attributable to equity holders of the Company and
on the weighted average number of shares in issue during the period.
Diluted profit/(loss) per share is calculated adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares.
For the six months ended 30 June 2023, there is no difference between the
basic earnings per share and the diluted earnings per share. The exercise
prices of the outstanding share options are above the average market price of
the shares and are therefore not dilutive under IAS 33 Earnings Per Share.
For the year-ended 31 December 2022 and six months ended 30 June 2023, there
is no difference between the diluted loss per share and the basic loss per
share presented due to the loss position of the Company.
5. Intangible Assets
Group and Company
Digital assets and tokens Software development costs Total
£ £ £
Cost
Balance at 1 January 2023 15,160,882 287,500 15,448,382
Additions 3,174,552 - 3,174,552
Disposals (1,129,827) - (1,129,827)
Net fair value gain for the year 10,321,645 - 10,321,645
As at 30 June 2023 27,527,252 287,500 27,814,752
Accumulated Amortisation
Balance at 1 January 2023 - - -
Charge for the period - 28,750 28,750
As at 30 June 2023 - 28,750 28,750
Net book value as at 30 June 2023 27,527,252 258,750 27,786,002
Digital assets and tokens External software development costs Total
£ £ £
Cost
Balance at 1 January 2022 6,917,916 - 6,917,916
Additions 600,000 - 600,000
Disposals - - -
Net fair value loss for the year (4,309,208) - (4,309,208)
As at 30 June 2022 3,208,708 - 3,208,708
Net book value as at 30 June 2022 3,208,708 - 3,208,708
Cost
Balance at 1 January 2022 6,917,916 - 6,917,916
Additions 15,662,040 287,500 15,949,540
Disposals (780,138) - (780,138)
Net fair value loss for the year (6,638,936) - (6,638,936)
As at 31 December 2022 15,160,882 287,500 15,448,382
Net book value as at 31 December 2022 15,160,882 287,500 15,448,382
The breakdown for all digital assets and tokens held at 30 June 2023 are
listed below:
Token name
Number of tokens Platform traded on £
Bitcoin BTC 626 Copper, Cold Storage 15,066,741
DigitalBits XDB 751,500 Copper 303
Ethereum ETH 6,794 Copper, Cold Storage 10,361,456
Optimism OP 732,899 Cold Storage 784,100
Cosmos ATOM 57,902 Copper 426,549
NEAR Protocol 225,362 Copper 245,747
Lido DAO 396,144 Copper, Cold Storage 642,356
27,527,252
6. Investments
Group
Six months ended 30 June Year ended 31 December
2023 2022 2022
£ £ £
At start of the period 3,691,186 5,559,308 5,559,308
Additions - 817,957 817,958
Impairments - - (1,735,824)
Revaluations (148,593) (265,080) (522,415)
Exchange difference (170,001) 361,955 (427,841)
At end of the period 3,372,592 6,474,140 3,691,186
Company
Six months ended 30 June Year ended 31 December
2023 2022 2022
£ £ £
At start of the period 3,691,187 5,559,308 5,559,308
Additions - 817,957 817,959
Impairments - - (1,735,824)
Revaluations (148,593) (265,080) (522,415)
Exchange difference (170,001) 361,955 (427,841)
At end of the period 3,372,593 6,474,140 3,691,187
The country of incorporation and investment class for investments held by the
Group at 30 June 2023 are listed below:
Country of Incorporation Investment class
£
Pioneer Media Holdings Inc 5,944 Canada Listed
AEON International 786,650 Hong Kong Unlisted
Big Head Club 175,467 Canada Unlisted
NFT Studios Ltd 786,650 UK Unlisted
Afterparty Inc 652,920 USA Safe note
Big Whale Labs Inc 178,311 Canada Safe note
Oliver Labs Inc 786,650 USA Safe note
3,372,592
The Company has the following investment directly in subsidiaries at 30 June
2023:
Name and registered address of company Share- Value of share-holding Country of incorporation Nature of business
holding £
1319644 B.C. Ltd 100% 1 Canada Company has not traded during the period
700-401 West Georgia Street, Vancouver BC
V6B 5A1
Canada
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