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

TanfieldAnnouncement

22/09/2016 07:05

RNS Number : 4968K
Tanfield Group PLC
22 September 2016
Tanfield Group Plc
("Tanfield", or "the Company")
Interim Results for the six-month period to 30 June 2016
Tanfield Group Plc, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2016. 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 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 by more than 25% compared to H1 2015.
 Smith Electric continues to seek funding.
 Balance Sheet investment values:
o Snorkel 36.3m ($60.1m) based on the exchange rate at the date of receipt of the holding equivalent to 23.6p per share. This compares to 46m based on the current exchange rate, equivalent to 29.9p per share.
o Smith Electric continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015. 
 The net book value of the Company is 36.4m equivalent to 23.7p per share.
Overview of investments
During the first six months of 2016, Snorkel achieved sales growth in excess of 25% compared to the same period in 2015 which resulted in $70m of sales for the period. The Board feels encouraged by the additional sales which have been achieved and is not aware of any reason why, with the ongoing efforts to further improve the product offering and customer experience, along with the continued commitment to Snorkel by the 51% beneficial owner, this trend should not continue.
As announced in the 2015 final results on 27 June 2016, the investment in Smith Electric 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 / Nick Prowting 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 2016









Six months to 
30 Jun 16 (unaudited)
Six months to 
30 Jun 15 (unaudited)
Year to
31 Dec 15
(audited)



000's
000's
000's






Revenue


-
-
-
Staff costs


(44)
(90)
618
Other operating income


14
15
27
Other operating expenses


(79)
(100)
(268)
(Loss)/profit from operations before impairments


(109)
(175)
377
Impairment of investments


-
-
(4,770)
Loss from operations after impairments


(109)
(175)
(4,393)
Finance expense


(8)
(34)
(54)
Finance income


-
-
1
Net finance expense 


(8)
(34)
(53)




Loss from operations before tax


(117)
(209)
(4,446)
Taxation


-
-
-
Loss & total comprehensive income for the period attributable to equity shareholders
(117)
(209)
(4,446)












Loss per share





Earnings/(loss) per share from operations





Basic and diluted (p)


(0.09)
(0.15)
(3.1)














BALANCE SHEET 
AS AT 30 JUNE 2016









30 Jun 16
(unaudited)
30 Jun 15
(unaudited)
31 Dec 15
(audited)



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





Non current Investments


36,283
41,053
36,283



36,283
41,053
36,283
Current assets





Trade and other receivables


102
154
98
Cash and cash equivalents


364
157
94



466
311
192






Total assets


36,749
41,364
36,475






Current liabilities





Trade and other payables


100
119
110



100
119
110
Non-current liabilities





Other payables


262
1,601
254



262
1,601
254






Total liabilities


362
1,720
364






Equity





Share capital


7,686
7,187
7,546
Share premium


17,053
16,455
16,800
Share option reserve


461
845
461
Special reserve


66,837
66,837
66,837
Merger reserve


1,534
1,534
1,534
Retained earnings


(57,184)
(53,214)
(57,067)
Total equity


36,387
39,644
36,111






Total equity and total liabilities


36,749
41,364
36,475








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 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 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 year ended 31 December 2015

















At 1 January 2015

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








Profit for the year

-
-
-
-
-
(4,446)
(4,446)
Total comprehensive income for the year

-
-
-
-
-
(4,446)
(4,446)
Transactions with owners in their capacity as owners:-








 Issuance of new shares

359
345
-
-
-
-
704
 Share based payments

-
-
(384)
-
-
384
-
At 31 December 2015

7,546
16,800
461
1,534
66,837
(57,067)
36,111

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2016




Six months to 30 Jun 16 (unaudited)
Six months to 30 Jun 15 (unaudited)
Year to
31 Dec 15
(audited)


000's
000's
000's





Loss before interest and taxation

(109)
(175)
(4,393)
Loss on impairment of investments

-
-
4,770
Operating cash flows before movements in working capital

(109)
(175)
(377)
(Increase)/decrease in receivables

(12)
(28)
(25)
Increase/(decrease) in payables

(1)
25
(1,331)
Net cash used in operations

(122)
(178)
(979)





Interest paid

-
(34)
-
Net cash used in operating activities

(122)
(212)
(979)





Cash flow from Investing Activities




Interest received

-
-
-
Net cash from investing activities

-
-
-










Cash flow from financing activities




Proceeds from issuance of ordinary shares net of costs

392
-
704
Net cash from financing activities

-
-
704
Net increase/(decrease) in cash and cash equivalents

270
(212)
(275)
Cash and cash equivalents at the start of period

94
369
369
Cash and cash equivalents at the end of the period

364
157
94


1 Basis of preparation
The Interim Report of the Company for the six months ended 30 June 2016 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 2015 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 2015, 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 16
to 30 Jun 15
31 Dec 15


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

152,464
143,741
144,823
Effect of dilutive potential ordinary shares from share options

149
635
171
Weighted average number of ordinary shares for the purposes of diluted earnings per share

12,613
144,376
144,994
Loss

Six months
Six months
Year to


to 30 Jun 16
to 30 Jun 15
31 Dec 15
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

(139)
(209)
(4,446)
Potential dilutive ordinary shares from share options

-
-
-
Loss for the purposes of diluted earnings per share

(139)
(209)
(4,446)





Loss per share from operations




Basic (p)

(0.09)
(0.15)
(3.1)
Diluted (p) a

(0.09)
(0.15)
(3.1)
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. 

This information is provided by RNS
The company news service from the London Stock Exchange
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