Unaudited interim report to 30 September 2023
28/12/2023 07:00
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RNS Number : 9703X VSA Capital Group PLC 28 December 2023
28 December 2023
VSA CAPITAL GROUP PLC
("VSA Capital" "VSA" or the "Company")
UNAUDITED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
VSA Capital Group plc (AQSE: VSA), announces its interim results for the half
year ending 30 September 2023.
Highlights
· Turnover of £1,051,000, EBITDA of (£1,542,000)
· Cash position £546,000
· NAV £2,557,000
· Retained Corporate Clients - 27
Chairman's Interim Report
In introducing the Company's interim report this year, I do so during very
difficult political, economic and market conditions.
On the regulatory side we have paid particular attention to our
responsibilities under the new Consumer Duty regime, and these have been
implemented successfully into our operations.
As previously signaled, we are reporting a loss for the period, although, as
Andrew Monk highlights below, this is primarily due to non-cash items relating
to the reduced value in our shareholdings.
Notwithstanding market conditions, we have an increased portfolio of client
companies and a good pipeline of transactions as we enter 2024 and we look
forward to continuing to service our clients professionally during these
difficult times.
Mark Steeves
Chairman
28 December 2023
CEO Interim report
A year ago, I wrote a very cautious CEO report saying that "Deal flow has
dried up and liquidity to invest has almost disappeared completely." Sadly, in
the last 12 months if anything, if it is possible, it has got worse! There are
now people asking the question of whether quoted equities have any future. I
believe they do but it does need support from Government. On a relative
basis I believe VSA is performing as well or better than most of our peer
group, but the entire industry is suffering and basically losing money. We
hope that in 2024 we do see an improved environment and with inflation now
falling rapidly, interest rates appearing to have peaked and possibly falling,
and if war in the Middle East and Ukraine could be stopped, I believe we could
see a significantly better market, let's hope we do for everyone's sake.
In our Final results in June, I indicated that we would report an interim loss
and we have of £1.8m. I also reported that I was hopeful we would recover
that to make a profit for the year ending 31 March 2024 and I reiterated that
in July. Unfortunately, since then issues around the value of our largest
shareholding of Silverwood Brands plc where we hold 0.85% of the Company, mean
that this is very unlikely and very disappointing. This will be a non-cash
loss but even so, significant.
We are fortunate that we have a good pipeline of deal flow which, whilst some
of it was expected to occur in the last quarter, has also been delayed and may
occur in the new financial year and this will impact our current year numbers.
We are also fortunate that the nature of our deal flow is quite broad
meaning that we are not exposed to just one type of activity. Investment
losses, which although are non-cash items, are having a significant impact.
At the period end we had a good current asset position with cash and debtors
supporting our balance sheet.
A year ago, I was delighted by the "Lush Transaction" that we completed for
Silverwood. How things have changed. I find it extraordinary how
Silverwood have handled the situation since we completed and that we now are
facing legal action from the "Lush Vendors" which we regard as without merit,
and we will defend vigorously although we have always been quite open that we
will always have "a conversation" as we know otherwise the only real winners
are the lawyers. I cannot say much more currently, now that the situation has
become legal and although we took provisions at our full year 2023, more will
be required this year. This should be much clearer when we report our full
year figures, and we can then show the impact smoothed out over 2 years which
will give a much more accurate feel of the underlying business strength.
So, I think fair to say 2023 has been a difficult year but I still feel that
VSA has got many things right. We keep a low-cost base, we are in sectors that
have good long-term growth prospects, and we have a very good international
reach for deal flow and our investor base and so when the markets do pick up,
we are well placed.
Andrew Monk
CEO
28 December 2023
The directors of the Company take responsibility for this announcement.
For further information, please contact:
VSA Capital Group plc +44 20 3005 5000
Andrew Monk - Chief Executive Officer
Andrew Raca - Head of Corporate Finance
Marcia Manarin - Finance Director & COO
AQSE Exchange Growth Market Corporate Adviser
Alfred Henry Corporate +44 20 3772 0021
Finance Limited
Nick Michaels / Maya K. Wassink enquiries@alfredhenry.com (mailto:enquiries@alfredhenry.com)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD TO 30 SEPTEMBER 2023
Six months Six months Year ended
ended ended 31 March 2023
30 September 2023 30 September 2022 Audited
Unaudited Unaudited
£'000 £'000
£'000
£ £ £
Turnover 1,051 846 4,359
Cost of sales (89) (82) (166)
Gross profit 962 764 4,193
Other operating income 20 20 39
Administrative expenses (1,472) (1,271) (3,091)
Operating (loss) / profit (490) (487) 1,141
Finance income 1 1 (1)
Gains / (losses) on investments (1,326) (355) (859)
(Loss) / profit on ordinary activities before taxation (1,815) (841)
281
Tax on profit/loss on ordinary activities - - (33)
(Loss) / profit for the year (1,815) (841) 248
Other Comprehensive income - - -
Total Comprehensive income (1,815) (841) 248
Earnings per share - profit after tax
pence pence pence
Basic (9.34) (4.3) 0.7
Diluted (5.88) (2.7) 0.5
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
As at As at As at
30 September 2023 Unaudited 30 September 2022 Unaudited 31 March 2023
£'000 £'000 Audited
£'000
Non-current assets
Property, plant and equipment - right of use 380 557 469
Property, plant and equipment - owned 65 94 78
Intangible Assets 827 1,158 992
Total non-current assets 1,272 1,809 1,539
Current assets
Trade and other receivables 323 497 382
Investments 1,106 555 2,141
Cash and cash equivalents 546 1,247 1,273
Total current assets 1,975 2,299 3,796
Total assets 3,247 4,108 5,335
Current liabilities
Trade and other payables 365 272 529
Finance liabilities - borrowings 162 189 217
Total current liabilities 527 461 746
Non-current liabilities
Finance liabilities - borrowings 163 325 217
Total non-current liabilities 163 325 217
Total liabilities 690 786 963
Equity
Share Capital 3,524 3,524 3,524
Share premium account 418 418 418
Share-based payments reserve 13 52 13
Accumulated profits/(losses) (1,398) (672) 417
Total equity 2,557 3,322 4,372
Total Equity and Liabilities 3,247 4,108 5,335
CONSOLIDATED GROUP CASHFLOW STATEMENT
FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2023
Six months ended 30 September 2023 Six months ended 30 September 202 Year ended 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Profit / (loss) before income tax (1,815) (841) 281
Tax paid - - -
Depreciation and amortisation 270 270 540
(Gain) / loss on current asset investments 1,325 405 860
Sales settled by shares - - (2,277)
(Increase) / decrease in trade / other receivables (234) 40 107
Increase / (decrease) in trade / other payables (164) (285) (13)
Change in share based payments reserve - - (38)
NET CASH USED IN OPERATING ACTIVITIES (618) (411) (540)
Cash flows from investing activities
Proceeds from disposal of plant, property and equipment - - -
Purchase of plant, property and equipment (3) (3) (3)
Proceeds from other investing activities 37 11 280
Purchase of other investments (34) (279) (312)
NET CASH GENERATED FROM INVESTING ACTIVITIES - (271) (35)
Cash flows from financing activities
Share capital issue - - -
Purchase of shares into treasury - - -
New finance leases - - -
Finance lease repayments (109) (81) (162)
NET CASH GENERATED FROM FINANCING ACTIVITIES (109) (81) (162)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (727) (763) (737)
Cash and cash equivalents at beginning of period 1,273 2,010 2,010
CASH AND CASH EQUIVALENTS AT END OF PERIOD 546 1,247 1,273
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD TO 30 SEPTEMBER 2023
1 General Information
VSA Capital Group plc is a listed public limited company (Aquis: VSA)
incorporated in the UK and registered in England and Wales (Company Number
04918684). The Company's registered office is at Park House, 16-18 Finsbury
Circus, London, EC2M 7EB.
These interim financial statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the consolidated financial statements of the Group as at and
for the year ended 31 March 2022 which have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by the
European Union.
The interim financial statements for the six months ended 30 September 2023
are unaudited and have not been reviewed by the Company's auditors Hilden Park
Accountants Limited. The comparative interim figures for the six months ended
30 September 2022 are also unaudited.
2 Basis of
preparation
The accounting policies applied by the Group in the preparation of these
condensed consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements for the year
ended 31 March 2023.
3 Profit or loss per share
Six months ended 30 September 2023 Six months ended 30 September 2022 Year ended 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Basic
Profit/ (Loss) for the period attributable to owners of the Company (1,815) (841) 248
Weighted average number of shares: 37,655,266 37,655,266 37,655,266
Basic earnings/(loss) per share (pence): (4.8) (2.2) 0.7
Diluted
Profit/ (Loss) for the period attributable to owners of the Company (1,815) (841) 248
Weighted average number of shares: 48,720,866 48,720,866 48,720,866
Diluted earnings/(loss) per share (pence): (3.7) (1.7) 0.5
The basic and diluted earnings per share were determined by dividing the
profit or loss attributable to the equity holders of the Company by the
weighted average number of shares outstanding during the periods.
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