REG - Tanfield Group PLC - Interim Results for the six-months to 30 June 2023
24/07/2023 07:00
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RNS Number : 8437G Tanfield Group PLC 24 July 2023
The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014. Upon the publication of this announcement via a Regulatory
Information Service ("RIS"), this inside information is now considered to be
in the public domain
Tanfield Group Plc
("Tanfield", or "the Company")
Interim Results for the six-month period to 30 June 2023
Tanfield, an investing company as defined by AIM Rules, announces its half
year results for the period ending 30 June 2023. The unaudited financial
information will shortly be available on the Company website
at www.tanfieldgroup.com (http://www.tanfieldgroup.com) .
Background
· Tanfield is a 49% shareholder in the equity of Snorkel International
Holdings LLC ("Snorkel") following the joint venture between the Company and
Xtreme Manufacturing LLC ("Xtreme") (the "Contemplated Transaction"), a
company owned by Don Ahern of Ahern Rentals Inc, relating to Snorkel, in
October 2013.
· The Snorkel investment is valued at £19.1m. The outcome of the US
Proceedings referenced below could have an impact on this valuation.
· On 22 October 2019, the Company announced that it had received a
Summons and Complaint, filed in Nevada (the "US Proceedings") by subsidiaries
of Xtreme, relating to the Contemplated Transaction.
· On 24 October 2019, the Company announced it had become necessary to
issue and serve a claim in the English High Court (the "UK Proceedings")
against its former solicitors acting for the Company at the time of the
Contemplated Transaction. On 18 October 2022, the Company announced that it
had settled its claims in relation to the UK Proceedings on a no-fault
basis.
· The Company's loss in H1 2023 reduced to £154k (H1 2022: £499k)
primarily as a consequence of a reduction in legal expenditure following the
settlement of the UK Proceedings, and the elimination of finance expenses
following the repayment of borrowings, in late 2022.
Overview of investments
As announced on 18 May 2023, in the first quarter of 2023 Snorkel's sales
increased by 4.4% to US$43.5m (Q1 2022: US$41.7m). Whilst the increase in
sales was a fairly modest US$1.8m in value, the EBITDA for the first quarter
of 2023 improved to a US$0.2m profit (Q1 2022: US$3.5m loss), an improvement
of some US$3.7m. Further information relating to the recent performance of
Snorkel can be found in the 18 May 2023 announcement.
The Company is now focussed on the US Proceedings which are continuing, with a
jury trial currently scheduled to take place in early 2024. However, the
Board expect the trial date will be rescheduled to around the summer of
2024. The Board continue to believe that a positive outcome to those
proceedings is possible. So far as it is necessary, the Company will
continue to vigorously defend its position whilst continuing to seek advice.
Further updates will be provided to Shareholders as and when appropriate.
For further information:
Tanfield Group
Plc
020 7220 1666
Daryn
Robinson
WH Ireland Limited - Nominated Advisor / Broker
James Joyce / Andrew de
Andrade
020 7220 1666
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2023
Six months to Six months to Year to
30 Jun 23 (unaudited) 30 Jun 22 (unaudited) 31 Dec 22
(audited)
£000's £000's £000's
Revenue - - -
Staff costs (77) (52) (242)
Other operating income 11 10 6,900
Other operating expenses (140) (269) (1,163)
(Loss)/profit from operations (206) (311) 5,495
Finance expense - (188) (565)
Finance income 52 - 16
(Loss)/profit before tax (154) (499) 4,946
Taxation - - -
(Loss)/profit & total comprehensive income for the period attributable to (154) (499) 4,946
equity shareholders
(Loss)/profit per share
Basic and diluted (p) (0.09) (0.31) 3.04
BALANCE SHEET
AS AT 30 JUNE 2023
30 Jun 23 30 Jun 22 31 Dec 22
(unaudited) (unaudited) (audited)
£000's £000's £000's
Non current assets
Non current Investments 19,100 19,100 19,100
19,100 19,100 19,100
Current assets
Trade and other receivables 53 67 30
Cash and cash equivalents 3,652 1,368 3,824
3,705 1,435 3,854
Total assets 22,805 20,535 22,954
Non-current liabilities
Borrowings - 2,958 -
- 2,958 -
Current liabilities
Trade and other payables 69 132 64
69 132 64
Total liabilities 69 3,090 64
Equity
Share capital 8,145 8,145 8,145
Share premium 17,336 17,336 17,336
Special reserve 66,837 66,837 66,837
Merger reserve 1,534 1,534 1,534
Retained earnings (71,116) (76,407) (70,962)
Total equity 22,736 17,445 22,890
Total equity and total liabilities 22,805 20,535 22,954
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
Six months to 30 June 2023 (unaudited)
At 1 January 2023 8,145 17,336 - 1,534 66,837 (70,962) 22,890
Comprehensive income
Loss for the period - - - - - (154) (154)
Total comprehensive income for the period - - - - - (154) (154)
At 30 June 2023 8,145 17,336 - 1,534 66,837 (71,116) 22,736
Six months to 30 June 2022 (unaudited)
At 1 January 2022 8,145 17,336 - 1,534 66,837 (75,908) 17,944
Comprehensive income
Loss for the period - - - - - (499) (499)
Total comprehensive income for the period - - - - - (499) (499)
At 30 June 2022 8,145 17,336 - 1,534 66,837 (76,407) 17,445
Year to December 2022 (audited)
At 1 January 2022 8,145 17,336 - 1,534 66,837 (75,908) 17,944
Comprehensive income
Profit for the year - - - - - 4,946 4,946
Total comprehensive income for the year - - - - - 4,946 4,946
At 31 December 2022 8,145 17,336 - 1,534 66,837 (70,962) 22,890
CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2023
Six months to 30 Jun 23 (unaudited) Six months to 30 Jun 22 (unaudited) Year to
31 Dec 22
(audited)
£000's £000's £000's
(Loss)/profit before tax (154) (499) 4,946
Adjustment for:
Finance expense - 188 565
Finance income (52) - (16)
Changes in operating assets and liabilities / working capital:
(Increase)/decrease in receivables (23) (44) (7)
Increase/(decrease) in payables 5 60 (8)
Cash (used in)/generated by operations (224) (295) 5,480
Interest paid - - (810)
Net cash (used in)/generated by operating activities (224) (295) 4,670
Cash flow from Investing Activities
Interest received 52 - 16
Net used in investing activities 52 - 16
Cash flow from financing activities
Proceeds from borrowings - 1,075 1,375
Repayment of borrowings - - (2,825)
Net cash (used in)/generated by financing activities - 1,075 (1,450)
Net increase in cash and cash equivalents (172) 780 3,236
Cash and cash equivalents at the start of period 3,824 588 588
Cash and cash equivalents at the end of the period 3,652 1,368 3,824
1 Basis of preparation
The Interim Report of the Company for the six months ended 30 June 2023 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 2022 which is available on request from the Company's
registered office, c/o Weightmans LLP, 1 St James' Gate, Newcastle upon Tyne,
NE99 1YQ or can be downloaded from the corporate website
www.tanfieldgroup.com.
2 Accounting Policies
Impact of accounting standards to be applied in future periods
There are a number of standards and interpretations which have been issued by
the International Accounting Standards Board that are effective for periods
beginning subsequent to 31 December 2023 that the Group has decided not to
adopt early. The Group does not believe these standards and interpretations
will have a material impact on the financial statements once adopted.
3 Loss per share
The calculation of the basic and diluted loss per share is based on the
following data:
Six months Six months Year to
to 30 Jun 23 to 30 Jun 22 31 Dec 22
Number of shares 000's 000's 000's
Weighted average number of ordinary shares for the purposes of basic earnings 162,907 162,907 162,907
per share
Loss From operations £000's £000's £000's
Loss for the purposes of basic earnings per share being net profit (154) (499) 4,946
attributable to owners of the parent
Loss per share from operations
Basic and diluted (p) (0.09) (0.31) (3.04)
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