REG - Tanfield Group PLC - Interim Results <Origin Href="QuoteRef">TAN.L</Origin>

TanfieldAnnouncement

27/07/2015 07:00

RNS Number : 0797U
Tanfield Group PLC
27 July 2015
The Tanfield Group Plc
("Tanfield", or "the Company")
 Interim Results for the six-month period to 30 June 2015
Tanfield Group Plc, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2015. The unaudited financial statements are 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 Group Plc currently owns 5.76% of Smith Electric Vehicles Corp. ("Smith") and 49% of Snorkel International Holdings LLC ("Snorkel"). 
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
 Aggregate current estimated value of holdings 46.9m ($73.1m), equivalent to approximately 33p per share, a 61% premium to the current market value of the Company*. 
 Aggregate valuation comprises;
o Snorkel holding 38.5m ($60.1m) equivalent to approximately 27p per share. The holding value of $60.1m has been converted at the current exchange rate and compares to a sterling holding value of 36.3m on the balance sheet based on the exchange rate at the date of receipt of the holding. 
o Smith estimated holding value of 6.9m ($10.7m) based on the the most recent valuation at which Smith received funds , as well as 1.5m ($2.3m) in the joint venture, totalling 8.4m ($13.0) equivalent to approximately 6p per share The book value of the Smith holding on the balance sheet is 4.8m
 The aggregated book value of investments in the balance sheet is 41.1m equivalent to a value per share of 28.5 p
 The net book value of the Company is 39.6m equivalent to 27.5p per share
*based on the closing mid-price of the Company's shares on 24 July 2015
Overview of investments
Snorkel continues to develop its business as announced in the Company's final results announcement of 22 June 2015 with an increasing demand for its products in a competitive market. Smith are making progress towards achieving their plans to publicly list the business and raising funds to allow for the execution of its strategy.
For further information:
Tanfield Group Plc
Roy Stanley - Non-executive Director  
0845 155 7755
WH Ireland Limited
James Joyce / James Bavister
0207 220 1666
Peterhouse Corporate Finance
Duncan Vasey / Peter Greensmith  
0207 220 9797

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2015









Six months to 
30 Jun 15 (unaudited)
Six months to 
30 Jun 14 (unaudited)
Year to
31 Dec 14
(audited)



000's
000's
000's






Revenue


-
-
-
Staff costs


(90)
(56)
(111)
Other operating income


15
9
18
Other operating expenses


(100)
(82)
(296)
Loss from operations 


(175)
(129)
(389)
Finance expense


(34)
(139)
(91)
Finance income


-
7
624
Net finance (expense) income 


(34)
(132)
533




Profit/(loss) from operations before tax


(209)
(261)
144
Taxation


-
-
-
(Loss)/profit & total comprehensive income for the period attributable to equity shareholders
(209)
(261)
144












(Loss)/earnings per share





Earnings/(loss) per share from operations





Basic (p)


(0.15)
(0.18)
0.1
Diluted (p)


(0.15)
(0.18)
0.1








BALANCE SHEET 
AS AT 30 JUNE 2015









30 Jun 15
(unaudited)
30 Jun 14
(unaudited)
31 Dec 13
(audited)



000's
000's
000's
Non current assets





Non current Investments


41,053
37,563
41,053



41,053
37,563
41,053
Current assets





Trade and other receivables


154
2,574
131
Deferred consideration


-
341
-
Cash and cash equivalents


157
257
369



311
3,172
500






Total assets


41,364
40,735
41,553






Current liabilities





Trade and other payables


119
1,581
135



119
1,581
135
Non-current liabilities





Other payables


1,601
-
1,565



1,601
-
1,565






Total liabilities


1,720
1,581
1,700






Equity





Share capital


7,187
7,086
7,187
Share premium


16,455
16,262
16,455
Share option reserve


845
862
845
Special reserve


66,837
66,837
66,837
Merger reserve


1,534
1,534
1,534
Retained earnings


(53,214)
(53,427)
(53,005)
Total equity


39,644
39,154
39,853






Total equity and total liabilities


41,364
40,735
41,553








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 2015

















At 1 January 2015

7,187
16,455
845
1,534
66,837
(53,005)
39,853
Comprehensive income








Loss for the period

-
-
-
-
-
(209)
(209)
Total comprehensive income for the period

-
-
-
-
-
(209)
(209)
At 30 June 2015

7,187
16,455
845
1,534
66,837
(53,214)
39,644









For the 6 month period ended 30 June 2014

















At 1 January 2014

6,975
16,262
1,904
1,534
66,837
(54,208)
39,304
Comprehensive income








Loss for the period

-
-
-
-
-
(261)
(261)
Total comprehensive income for the period

-
-
-
-
-
(261)
(261)
Transactions with owners in their capacity as owners:-








 Share options exercised

111
-
(1,042)
-
-
1,042
111
At 30 June 2014

7,086
16,262
862
1,534
66,837
(53,427)
39,154









For the year ended 31 December 2014

















At 1 January 2014

6,975
16,262
1,904
1,534
66,837
(54,208)
39,304
Comprehensive income








Profit for the year

-
-
-
-
-
144
144
Total comprehensive income for the year

-
-
-
-
-
144
144
Transactions with owners in their capacity as owners:-








 Issuance of new shares

212
193
-
-
-
-
405
 Share based payments

-
-
(1,059)
-
-
1,059
-
At 31 December 2014

7,187
16,455
845
1,534
66,837
(53,005)
39,853

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2015




Six months to 30 Jun 15 (unaudited)
Six months to 30 Jun 14 (unaudited)
Year to
31 Dec 14
(audited)


000's
000's
000's





Loss before interest and taxation

(175)
(129)
(389)
(Loss)/profit on current asset currency fluctuations

-
(95)
55
Operating cash flows before movements in working capital

(175)
(224)
(334)
(Increase)/decrease in receivables

(28)
337
109
Increase/(decrease) in payables

25
(305)
(186)
Net cash used in operations

(178)
(192)
(411)





Interest paid

(34)
(44)
-
Net cash used in operating activities

(212)
(236)
(411)





Cash flow from Investing Activities




Interest received

-
7
-
Net cash from investing activities

-
7
-










Cash flow from financing activities




Proceeds from issuance of ordinary shares net of costs

-
111
405
Net cash from financing activities

-
111
405
Net decrease in cash and cash equivalents

(212)
(118)
(6)
Cash and cash equivalents at the start of period

369
375
375
Cash and cash equivalents at the end of the period

157
257
369


1 Basis of preparation
The Interim Report of the Company for the six months ended 30 June 2015 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 2014 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 2014, as described in those financial statements. In particular, the accounts have been prepared on a going concern basis, and as set out on page 17 of those financial statements. 
3 Earnings/(loss) per share
The calculation of the basic and diluted (loss)/earnings per share is based on the following data:
Number of shares

Six months
Six months
Year to


to 30 Jun 15
to 30 Jun 14
31 Dec 14


000's
000's
000's
Weighted average number of ordinary shares for the purposes of basic earnings per share

143,741
141,427
141,755
Effect of dilutive potential ordinary shares from share options

635
720
584
Weighted average number of ordinary shares for the purposes of diluted earnings per share

144,376
142,147
142,339
Earnings

Six months
Six months
Year to


to 30 Jun 15
to 30 Jun 14
31 Dec 14
From operations

000's
000's
000's
Earnings/(loss) for the purposes of basic earnings per share being net profit attributable to owners of the parent

(209)
(261)
144
Potential dilutive ordinary shares from share options

-
-
-
Earnings/(loss) for the purposes of diluted earnings per share

(209)
(261)
144



Earnings/(loss) per share from operations


Basic (p)

(0.15)
(0.18)
0.10
Diluted (p) a

(0.15)
(0.18)
0.10
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 2014 and June 2015. 












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