REG - Tanfield Group PLC - Half-year Report <Origin Href="QuoteRef">TAN.L</Origin>
RNS Number : 9786PTanfield Group PLC06 September 2017Tanfield Group Plc
("Tanfield", or "the Company")
Interim Results for the six-month period to 30 June 2017
Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2017. The unaudited financial information will shortly be available on the Company website atwww.tanfieldgroup.com.
Background
The Company is currently defined as an investing company that has two passive investments. This status resulted from the disposal of Smith Electric Vehicles in 2010 and the disposal of Snorkel Europe Limited in October 2013. Tanfield currently owns 49% of Snorkel International Holdings LLC ("Snorkel") and 5.76% of Smith Electric Vehicles Corp. ("Smith").
The strategy of the Company in relation to these investments is to return as much as possible of any realised value to shareholders as events occur and circumstances allow, subject to compliance with any legal requirements associated with such distributions.
Summary
Further sales growth achieved by Snorkel in the first six months of the year, up 13% compared to H1 2016 and profitable for the period.
Snorkel carrying value is 36.3m which represents approximately 23p per share.
Smith continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015.
Overview of investments
Based on the unauditied financial information received from Snorkel, during the first six months of 2017 the business achieved sales of $79.7m, an increase of 13% compared to the same period in 2016, with an operating profit, excluding depreciation, of $1.5m (H1 2016: $1.4m loss). Should the trend of sales growth continue for the remainder of the year, the Board believes 2017 could be a profitable year for the Snorkel business and is of the opinion that the investment in Snorkel will result in a return to shareholders in the future. However, at the current rate of growth it is not expected to materialise until after 30 September 2018, when the outcome becomes uncertain and the return to shareholders could therefore be greater or less than the current carrying value.
In 2015 the investment in Smith was impaired to nil due to the uncertainty around its future and the level of funding it required. The situation continues to be monitored and should some significant progress be made then an update will be provided.
For further information:
Tanfield Group Plc
Daryn Robinson 0700 349 7489
WH Ireland Limited - Nominated Advisor
James Joyce / Alex Bond 020 7220 1666
Peterhouse Corporate Finance - Broker
Peter Greensmith / Duncan Vasey 020 7220 9797
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2017
Six months to
30 Jun 17 (unaudited)
Six months to
30 Jun 16 (unaudited)
Year to
31 Dec 16
(audited)
000's
000's
000's
Revenue
-
-
-
Staff costs
(44)
(44)
(85)
Other operating income
16
14
30
Other operating expenses
(81)
(79)
(182)
(Loss)/profit from operations before impairments
(109)
(109)
(237)
Finance expense
-
(8)
(13)
Finance income
-
-
1
Net finance expense
-
(8)
(12)
Loss from operations before tax
(109)
(117)
(249)
Taxation
-
-
-
Loss & total comprehensive income for the period attributable to equity shareholders
(109)
(117)
(249)
Loss per share
Earnings/(loss) per share from operations
Basic and diluted (p)
(0.1)
(0.1)
(0.2)
BALANCE SHEET
AS AT 30 JUNE 2017
30 Jun 17
(unaudited)
30 Jun 16
(unaudited)
31 Dec 16
(audited)
000's
000's
000's
Non current assets
Non current Investments
36,283
36,283
36,283
36,283
36,283
36,283
Current assets
Trade and other receivables
65
102
61
Cash and cash equivalents
166
364
269
231
466
330
Total assets
36,514
36,749
36,613
Current liabilities
Trade and other payables
101
100
91
101
100
91
Non-current liabilities
Other payables
-
262
-
-
262
-
Total liabilities
101
362
91
Equity
Share capital
7,816
7,686
7,816
Share premium
17,190
17,053
17,190
Share option reserve
459
461
459
Special reserve
66,837
66,837
66,837
Merger reserve
1,534
1,534
1,534
Retained earnings
(57,423)
(57,184)
(57,314)
Total equity
36,413
36,387
36,522
Total equity and total liabilities
36,514
36,749
36,613
STATEMENT OF CHANGES IN EQUITY
Share capital
Share premium
Share option reserve
Merger reserve
Special reserve
Retained earnings
Total
000's
000's
000's
000's
000's
000's
000's
For the 6 month period ended 30 June 2017
At 1 January 2017
7,816
17,190
459
1,534
66,837
(57,314)
36,522
Comprehensive income
Loss for the period
-
-
-
-
-
(109)
(109)
Total comprehensive income for the period
-
-
-
-
-
(109)
(109)
At 30 June 2017
7,816
17,190
459
1,534
66,837
(57,423)
36,413
For the 6 month period ended 30 June 2016
At 1 January 2016
7,546
16,800
461
1,534
66,837
(57,067)
36,111
Comprehensive income
Loss for the period
-
-
-
-
-
(117)
(117)
Total comprehensive income for the period
-
-
-
-
-
(117)
(117)
Transactions with owners in their capacity as owners:-
Issuance of new shares
140
253
-
-
-
-
393
At 30 June 2016
7,686
17,053
461
1,534
66,837
(57,184)
36,387
For the year ended 31 December 2016
At 1 January 2016
7,546
16,800
461
1,534
66,837
(57,067)
36,111
Comprehensive income
Profit for the year
-
-
-
-
-
(249)
(249)
Total comprehensive income for the year
-
-
-
-
-
(249)
(249)
Transactions with owners in their capacity as owners:-
Issuance of new shares
270
390
-
-
-
-
660
Share based payments
-
-
(2)
-
-
2
-
At 31 December 2016
7,816
17,190
459
1,534
66,837
(57,314)
36,522
CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2017
Six months to 30 Jun 17 (unaudited)
Six months to 30 Jun 16 (unaudited)
Year to
31 Dec 16
(audited)
000's
000's
000's
Loss before interest and taxation
(109)
(109)
(237)
Operating cash flows before movements in working capital
(109)
(109)
(237)
Decrease/(increase) in receivables
5
(12)
25
Increase/(decrease) in payables
1
(1)
(273)
Net cash used in operating activities
(103)
(122)
(485)
Cash flow from financing activities
Proceeds from issuance of ordinary shares net of costs
-
392
660
Net cash from financing activities
-
-
660
Net (decrease)/increase in cash and cash equivalents
(103)
270
175
Cash and cash equivalents at the start of period
269
94
94
Cash and cash equivalents at the end of the period
166
364
269
1 Basis of preparation
The Interim Report of the Company for the six months ended 30 June 2017 has been prepared in accordance with AIM Rule 18 and not in accordance with IAS34 "Interim Financial Reporting" therefore is not fully in compliance with IFRS.
The half year report does not constitute financial statements as defined in Section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for full annual statements. It should be read in conjunction with the annual report and financial statements for the year ended 31 December 2016 which is available on request from the Company's registered office, Sandgate House, 102 Quayside, Newcastle upon Tyne NE1 3DX or can be downloaded from the corporate website www.tanfieldgroup.com.
2 Accounting Policies
The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2016, as described in those financial statements. In particular, the accounts have been prepared on a going concern basis, and as set out on page 16 of those financial statements.
3 Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
Number of shares
Six months
Six months
Year to
to 30 Jun 17
to 30 Jun 16
31 Dec 16
000's
000's
000's
Weighted average number of ordinary shares for the purposes of basic earnings per share
156,324
152,464
153,677
Effect of dilutive potential ordinary shares from share options
129
149
122
Weighted average number of ordinary shares for the purposes of diluted earnings per share
156,453
152,613
153,799
Loss
Six months
Six months
Year to
to 30 Jun 17
to 30 Jun 16
31 Dec 16
From operations
000's
000's
000's
Loss for the purposes of basic earnings per share being net profit attributable to owners of the parent
(109)
(139)
(249)
Potential dilutive ordinary shares from share options
-
-
-
Loss for the purposes of diluted earnings per share
(109)
(139)
(249)
Loss per share from operations
Basic (p)
(0.1)
(0.1)
(0.2)
Diluted (p)a
(0.1)
(0.1)
(0.2)
aIAS33 defines dilution as a reduction in earnings per share or an increase in loss per share resulting from the assumption that options are exercised. As the potential dilutive ordinary shares from share options reduce the loss per share these shares are omitted from the dilutive loss per share calculation in June 2016 and June 2017.
This information is provided by RNSThe company news service from the London Stock ExchangeENDIR LLFFIALIRIID
Recent news on Tanfield
See all newsREG - Tanfield Group PLC - Final Results for the year ended 31 Dec 2023
AnnouncementREG - Tanfield Group PLC - Snorkel Investment Update
AnnouncementREG - Tanfield Group PLC - Snorkel Investment Update
AnnouncementREG - Tanfield Group PLC - Interim Results for the six-months to 30 June 2023
AnnouncementREG - Tanfield Group PLC - Result of AGM
Announcement