REG - Westminster Group - Half-year Report
29/09/2023 07:00
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RNS Number : 0684O Westminster Group PLC 29 September 2023
Westminster Group Plc
('Westminster', the 'Group' or the 'Company')
Interim Results for the six months to 30 June 2023
Westminster Group Plc (AIM: WSG), a leading supplier of managed services and
technology-based security solutions, announces its unaudited interim results
for the six months ended 30 June 2023 (the 'Period').
Highlights:
· Delivered products and services to 35 countries around the world.
· West African airport operations operating at record levels.
· Training business operating at record levels.
· Guarding business expanded, including providing new services for the
Historic Royal Palaces.
· Progress continues to be made with DRC and other Managed Services
opportunities.
· Group revenues £3.5 million (H1 2022: £3.9 million).
· Gross profit increased to £2.24m (margin: 64%) (H1 2022: £1.98m
(margin: 51%)).
· Administrative expenses are down to £2.52 million (H1 2022: £2.76
million).
· EBITDA improves to loss of £98k (H1 2022: Loss £648k).
· Operating Loss reduced to £274k (H1 2022: Loss £782k).
· Loss per share of 0.09p (H1 2022: Loss 0.24p).
Commenting on the results and current trading, Peter Fowler, Chief Executive
of Westminster Group, said:
"I am pleased to report that, despite the global uncertainty and economic
challenges, our underlying business continues to perform well.
"In H1 our West African airport operations and our training business were both
operating at record levels. Our guarding business has exceeded internal
expectations in the Period, and we saw a number of contracts extended and
expanded, including providing services for the Historic Royal Palaces. We have
delivered products and services to 35 countries around the world, including
some important new contract wins plus we have continued to progress our DRC
project and other large-scale opportunities.
"We look forward to delivering further growth and improvements over the
remainder of 2023, building on our 2022 results. The key to achieving this, of
course, is to secure new contracts with enough time to recognise revenues in
the year and we are working hard to deliver that. We remain positive about our
future growth prospects."
Westminster Group Plc Media enquiries via Walbrook PR
Rt. Hon. Sir Tony Baldry - Chairman
Peter Fowler - Chief Executive Officer
Mark Hughes - Chief Financial Officer
Strand Hanson Limited (Financial & Nominated Adviser)
James Harris 020 7409 3494
Ritchie Balmer
Richard Johnson
Zeus Capital Limited (Broker) 020 3829 5000
Louisa Waddell
Simon Johnson
Walbrook (Investor Relations)
Tom Cooper 020 7933 8780
Paul Vann
Nick Rome Westminster@walbrookpr.com
Notes:
Westminster Group plc is a specialist security and services group operating
worldwide via an extensive international network of agents and offices in over
50 countries.
Westminster's principal activity is the design, supply and ongoing support of
advanced technology security solutions, encompassing a wide range of
surveillance, detection (including Fever Detection), tracking and interception
technologies and the provision of long-term managed services contracts such as
the management and running of complete security services and solutions in
airports, ports and other such facilities together with the provision of
manpower, consultancy and training services. The majority of its customer
base, by value, comprises governments and government agencies,
non-governmental organisations (NGOs) and blue-chip commercial organisations.
The Westminster Group Foundation is part of the Group's Corporate Social
Responsibility activities. www.wg-foundation.org
(http://www.wg-foundation.org)
The Foundation's goal is to support the communities in which the Group
operates by working with local partners and other established charities to
provide goods or services for the relief of poverty and the advancement of
education and healthcare particularly in the developing world.
The Westminster Group Foundation is a Charitable Incorporated Organisation,
CIO, registered with the Charities Commission number 1158653.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE
MARKET ABUSE REGULATION NO. 596/2014 ("MAR") WHICH IS PART OF UK LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN
Chief Executive Officer's Review
Overview
In our 2022 Annual Report, I stated we were looking to build on the progress
we had made in that year and that Q1 traded ahead of budget. I am pleased to
report that, despite the global uncertainty and economic challenges, our
underlying business continues to meet internal expectations.
H1 2023 we achieved revenues of £3.5m (H1 2022: £3.9m). The reduction in
revenues is partly as a result of terminating the Ghana port operation in
February 2023. as previously advised, however this has largely been offset by
other parts of the business performing well, in some cases at record levels,
and partly as a result of delayed Technology sales due to the economic
uncertainties impacting purchasing decisions. However, an improvement in
margins meant we achieved an improved gross profit of £2.2m 13% up on H1 2022
(£2.0m) and this together with a reduction in overhead costs as a result of
our ongoing cost restructuring strategy, enabled us to deliver a significant
improvement in EBITDA loss to £98k (H1 2022: loss £648k), well ahead of
budget for the half year. This is also despite an exceptional £234k impact
from exchange rate losses.
Our West African airport operations have continued the growth we saw in 2022
and are currently running at record levels. The new terminal operation and our
collaboration with Summa are working well and have been a positive
development.
Our guarding business has performed well in the Period, and we have seen a
number of contracts extended and expanded, including providing services for
the Historic Royal Palaces.
Our training businesses have also performed well, trading at record levels,
securing various new contracts and continuing to provide services at one of
the UK's largest airports.
In H1 2023, we delivered products and services to 35 countries around the
world, including some important new contract wins such as explosive detection
systems to Saudi Arabia, and security equipment to a leading French airport,
which we believe will lead to further business in the sector. We are pleased
to have been selected to provide security for the Echo of Superbloom display
at the Tower of London and we continue to receive a healthy level of enquiries
for our products and services from around the world. That said, Technology
sales in the Period are behind budget as the global economic situation
continues to have an impact on sentiment and customer's ability to fund new
capital-intensive contracts. However, we do have several potential projects in
the pipeline, including the previously delayed projects which we are
negotiating alternative payments schemes and which we still expect to
materialise in H2 2023.
The Martyn's Law (Protect Duty) legislation, which will set out standards to
protect patrons and the general public from terrorist attacks when in crowded
spaces, was expected to come into force within the UK during 2023, but due to
parliamentary procedures, is now expected to be in the King's Speech to
parliament on 7 November 2023, for implementation in 2024. The Home Office
estimates that 650,000 UK businesses could be affected. This could include
settings such as pubs, shopping centres, music venues, parks, places of
worship and any other place where large gatherings of people occur. With
Westminster's expertise and portfolio of products and services we are well
placed to assist businesses and organisations improve their security. In this
respect, we have already secured a number of important contracts ahead of the
legislation coming into force and are in contract discussions with a number of
other potential customers. We believe this could be a sizeable business
opportunity for the Group. For more information on Protect Duty, see here:
https://www.wg-plc.com/protect-duty# (https://www.wg-plc.com/protect-duty)
A key part of our growth strategy is of course delivering on new large-scale,
long-term Managed Services projects and in this respect, we are working hard
to deliver on the numerous project opportunities we have developed. Our
long-standing DRC project continues to move forward albeit at a frustratingly
slow pace, but we have every reason to believe this will be finalised this
year. In addition, we are close to finalising one or two other such sizeable
Managed Services prospects and whilst timing is notoriously difficult to call
when dealing with government organisations, we could deliver on one of these
near-term opportunities at any time.
Our settlement negotiations with Scanport regarding early termination of the
Ghana Port operation appears to be nearing a conclusion and we are hopeful of
receiving a cash payment before the end of the year.
Financial
Revenues were at £3.5 million (H1 2022: £3.9 million) for the first half
year. This decrease is represented primarily by the end of the Ghana port
operation and lower Technology sales due to economic uncertainty in the world,
offset by strong performances in other areas of the business.
The Group generated a gross profit of £2.2 million (H1 2022: £2.0 million)
which equates to a gross margin of 64% (H1 2022: 51%). The percentage
increase is due to cost control and an increase in high margin services sales
in H1 2023 changing the margin mix.
The operating loss was £0.274 million (H1 2022: loss of £0.782 million).
This improvement is due to improved margins and lower overheads as a result of
the cost restructuring strategy we have been implementing.
Cash balance as at 30 June 2023 was: £0.1 million (30 June 2022: £0.4
million, 31 December 2022: £0.3 million). The Group also has overdraft
facilities of c. £0.4 million which were unutilised at 30 June 2023.
Working capital has improved from 2022 with debtor balances at £4.8m (2022:
£3.7m) vs creditors of £1.9m (£2.1m)
Earnings per share improved to a loss of 0.09 pence (H1 2022: 0.24 pence
loss).
Outlook
Our business is traditionally H2 weighted, and we believe that will continue
to be the case this year, accordingly we look forward to delivering continued
growth and improvements over the remainder of 2023 building on our 2022
results. The key to achieve this, of course, is to secure new contracts with
enough time to recognise revenues in the year and we are working hard to
deliver that. We remain positive about our future growth prospects.
Peter Fowler,
Group Chief Executive
28 September 2023
Condensed consolidated statement of comprehensive income (unaudited)
for the six months ended 30 June 2023
Note Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
Total Total Total
£'000 £'000 £'000
Revenue 5 3,482 3,916 9,528
Cost of sales (1,241) (1,934) (4,393)
Gross profit 2,241 1,982 5,135
Administrative expenses (2,515) (2,764) (5,460)
Operating loss 7a (274) (782) (325)
Analysis of operating loss (274) (782) (325)
Add back depreciation and amortisation 104 134 252
Add back share-based expense 72 - -
EBITDA loss from underlying operations 6 (98) (648) (73)
Finance Costs 8 (13) (5) (40)
(Loss) before taxation (287) (787) (365)
Taxation 7b - - 354
Total comprehensive income for the Period (287) (787) (11)
Profit / (loss) and total comprehensive income attributable to:
Owners of the parent (281) (788) 121
Non-controlling interest (6) 1 (132)
Loss and total comprehensive income (287) (787) (11)
Earnings per share (pence) 7c (0.09) (0.24) 0.00
Condensed consolidated balance sheet (unaudited)
as at 30 June 2023
As at 30 June 2023 As at 30 June 2022 As at 31 December 2022
Note £'000 £'000 £'000
Goodwill 614 614 615
Other intangible assets 80 120 106
Property, plant and equipment 1,817 1,924 1,825
Deferred Tax 1,309 953 1,308
Total Non-Current Assets 3,820 3,611 3,854
Inventories 459 795 485
Trade and other receivables 4,818 3,747 4,808
Cash and cash equivalents 54 398 289
Total Current Assets 5,331 4,940 5,582
Non-current receivable 369 411 593
Total Assets 9,520 8,962 10,029
Called up share capital 9 331 331 331
Share based payment reserve 433 1,007 964
Revaluation reserve 139 139 139
Retained earnings 6,899 5,589 6,503
Equity attributable to
Owners of the parent 7,802 7,066 7,937
Non-controlling interest (528) (389) (522)
Total Shareholders' Equity 7,274 6,677 7,415
Non-current borrowings 10 49 49 27
Total Non-Current Liabilities 49 49 27
Current borrowing 10 182 60 194
Contractual liabilities 69 69 80
Trade and other payables 1,946 2,107 2,313
Total Current Liabilities 2,197 2,236 2,587
Total Liabilities 2,246 2,285 2,614
Total Liabilities and Shareholders' Equity 9,520 8,962 10,029
Condensed consolidated statement of changes in equity (unaudited)
for the six months ended 30 June 2023
Called up share capital Share premium account Merger relief reserve Share based payment reserve Revaluation reserve Retained earnings Total Non-controlling interest Total share-holders' equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1(st) January 2023 331 - - 964 139 6,503 7,937 (522) 7,415
Loss for the Period - - - - - (281) (281) (6) (287)
Total comprehensive expense for the Period - - - - - (281) (281) (6) (287)
Transactions with owners in their capacity as owners:
Lapse / waiver of Share Options - - - (603) - 603 - - -
Issue of new warrants & Share Options - - - 72 - - 72 - 72
Exchange rate movement in equity - - - - - 74 74 74
- - - (531) - 677 146 - 146
As at 30th June 2023 331 - - 433 139 6,899 7,802 (528) 7,274
for the six months ended 30 June 2022
Called up share capital Share premium account Merger relief reserve Share based payment reserve Revaluation reserve Retained earnings Total Non-controlling interest Total share-holders' equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1(st) January 2022 331 - - 1,043 139 6,340 7,853 (390) 7,463
Loss for the Period - - - - - (788) (788) 1 (787)
Total comprehensive expense for the Period - - - - - (788) (788) 1 (787)
Transactions with owners in their capacity as owners:
Lapse of share options - - - (36) - 36 - - -
Other movement in equity - - - - - 1 1 - 1
- - - (36) - 37 1 - 1
As at 30th June 2022 331 - - 1,007 139 5,589 7,066 (389) 6,677
Called up share capital Share premium account Merger relief reserve Share based payment reserve Revaluation reserve Retained earnings Total Non-controlling interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
AS AT 1 JANUARY 2022 331 - - 1,043 139 6,340 7,853 (390) 7,463
Lapse of share options - - - (79) - 79 - - -
Other movements in equity - - - - - (37) (37) - (37)
TRANSACTIONS WITH OWNERS - - - (79) - 42 (37) - (37)
Total comprehensive expense for the year - - - - - 121 121 (132) (11)
AS AT 31 DECEMBER 2022 331 - - 964 139 6,503 7,937 (522) 7,415
Consolidated Cash Flow Statement (unaudited)
for the six months ended 30 June 2023
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
Total Total Total
Note £'000 £'000 £'000
Loss after taxation (287) (787) (11)
Tax - - (354)
Loss before taxation (287) (787) (365)
Non-cash adjustments 8 230 136 252
Net changes in working capital 8 (135) 175 (569)
Cash outflow from operating activities (192) (476) (682)
Investing activities
Purchase of property, plant and equipment (66) (132) (111)
Purchase of intangible assets - - (12)
Cash outflow from investing activities (66) (132) (123)
Financing activities
Increase in debt 36 65 200
Finance cost (4) (3) (40)
Loan drawdown (9) - -
Other loan repayments, including interest - - (10)
Cash inflow from financing activities 23 62 150
Decrease in cash and cash equivalents in the Period (235) (546) (655)
Cash and cash equivalents at the beginning of the Period 289 944 944
Cash and cash equivalents at the end of the Period 54 398 289
Notes to the unaudited financial statements
for the six months ended 30 June 2023
1. General information and nature of operations
This condensed consolidated interim financial report for the half-year
reporting period ended 30 June 2023 has been prepared in accordance with
Accounting Standard IAS 34 Interim Financial Reporting. These unaudited
interim financial statements were approved by the board on 28 September 2023.
The 31 December 2022 numbers are extracted from the Group's audited accounts.
The interim report does not include all the notes of the type normally
included in an annual financial report. Accordingly, this report is to be read
in conjunction with the annual report for the year ended 31 December 2022 and
any public announcements made by Westminster Group Plc during the interim
reporting period
Westminster Group Plc (the "Company") was incorporated on 7 April 2000 and is
domiciled and incorporated in the United Kingdom and quoted on AIM. The
Group's financial statements for the six-month period ended 30 June 2023
consolidate the individual financial information of the Company and its
subsidiaries. The Group designs, supplies and provides advanced technology
security solutions and services to governmental and non-governmental
organisations on a global basis.
The Group does not show any distinct seasonality although traditionally the
second half is stronger than the first.
2. Significant changes in the current reporting period
The impact of the pandemic is receding, but uncertainty remains in the global
economy. However, we continue to supply globally with an active business
development program. The West African Airport has returned from the pandemic
hiatus to levels above the pre-pandemic passenger numbers. Training is also
recovering strongly with a buoyant market both in the UK and overseas.
Please refer to the Chief Executive Officers review for further information.
3. Basis of preparation
This condensed consolidated interim financial report for the half-year
reporting period ended 30 June 2023 has been prepared in accordance with
Accounting Standard IAS 34 Interim Financial Reporting.
The interim report does not include all the notes of the type normally
included in an annual financial report. Accordingly, this report is to be read
in conjunction with the annual report for the year ended 31 December 2022 and
any public announcements made by Westminster Group Plc during the interim
reporting period.
The accounting policies adopted are consistent with those of the previous
financial year and corresponding interim reporting period and the adoption of
new and amended standards as set out below.
These consolidated interim financial statements for the six months ended 30
June 2023 have neither been audited nor formally reviewed by the Group's
auditors. The financial information for the year ended 31 December 2022 set
out in this interim report does not constitute statutory accounts as defined
in section 435 of the Companies Act 2006 but is derived from those accounts.
The statutory financial statements for the year ended 31 December 2022 have
been reported on by the Company's auditors and delivered to the Registrar of
Companies. A copy is available at
https://www.wsg-corporate.com/investor-relations/publications/
(https://www.wsg-corporate.com/investor-relations/publications/) .
3(a) New and amended standards adopted by the Group
The following new or amended standards relevant to the group became applicable
for the current reporting period.
· IAS 1 - Presentation of Financial Statements
· IAS 8 - Accounting Policies, Changes in Accounting Estimates and
Errors
· Deferred Tax Related to Assets and Liabilities Arising from a Single
Transaction - Amendments to IAS 12
· IAS 16 - Property, Plant and Equipment
· IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
· Income Taxes (Amendments to IAS 12)
The Group did not have to change its accounting policies or make retrospective
adjustments as a result of adopting these standards.
3(b) Impact of standards issued but not yet applied by the entity
The Group does not expect to be significantly impacted by the adoption of
standards issued but not yet applied.
4. Going concern
The directors have considered the way the Group has continued to trade.
Projections have demonstrated that the group has sufficient funds to perform
its obligations. At the time of approving this interim report, and in view
of the foregoing, the directors have a reasonable expectation that the Group
has adequate resources to continue in operational existence for the
foreseeable future. Thus, they continue to adopt the going concern basis of
accounting in preparing the financial statements.
5. Segment reporting
Operating segments
The Board considers the Group on a Business Unit basis. Reports by Business
Unit are used by the chief decision-makers in the Group. The Business Units
operating during the Period are the main operating work streams, Services and
Technology (products and solutions).
6 Months to 30 June 2023
Managed Services Technology Group and Central Group Total
£'000 £'000 £'000 £'000
6 MONTHS TO JUNE 2023
Supply of products - 379 - 379
Supply and installation contracts - 13 - 13
Maintenance and services 2,673 147 - 2,820
Training courses 263 6 - 269
Revenue 2,936 545 - 3,482
Segmental underlying EBITDA 1,705 (109) (1,694) (98)
Share based expense 8 - - (72) (72)
Depreciation & amortisation (72) (2) (30) (104)
Segment operating result 1,633 (111) (1,796) (274)
Finance cost - (1) (12) (13)
Profit/ (loss) before tax 1,633 (112) (1,808) (287)
Income tax charge - - - -
Profit/(loss) for the period 1,633 (112) (1,808) (287)
Segment assets 5,740 1,217 2,563 9,520
Segment liabilities 1,155 550 541 2,246
Capital expenditure 51 - 15 66
6 Months to 30 Jun 2022
Services Technology Group and Central Group Total
£'000 £'000 £'000 £'000
6 MONTHS TO JUNE 2022
Supply of products - 621 - 621
Supply and installation contracts - - - -
Maintenance and services 3,014 155 - 3,169
Training courses 126 - - 126
Revenue 3,140 776 - 3,916
Segmental underlying EBITDA 1,705 (184) (2,169) (648)
Depreciation & amortisation (72) (2) (60) (134)
Segment operating result 1,633 (186) (2,229) (782)
Finance cost - (1) (4) (5)
Profit/ (loss) before tax 1,633 (187) (2,233) (787)
Income tax charge - - - -
Profit/(loss) for the period 1,633 (187) (2,233) (787)
Segment assets 5,182 1,142 2,638 8,962
Segment liabilities 1,194 550 541 2,285
Capital expenditure 117 - 15 132
Marketing segments
Our extensive portfolio of products and services are categorised in three key
focus sectors - Land, Sea and Air. We are starting to report on these
sectors.
Six months ended 30 June 2023 Six months ended 30 June 2022
£'000 £'000
Land 1,004 1,056
Sea 103 593
Air 2,375 2,267
Total revenue 3,482 3,916
Geographical areas
The Group's international business is conducted on a global scale, with agents
present in all major continents. The following table provides an analysis of
the Group's sales by geographical market, irrespective of the origin of the
goods/services.
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
£'000 £'000 £'000
United Kingdom and Europe 1,164 1,005 2,520
Africa 2,203 2,710 6,704
Middle East 92 58 68
Rest of the World 23 143 236
Total revenue 3,482 3,916 9,528
6. Reconciliation of adjusted EBITDA
A reconciliation of adjusted EBITDA to operating profit before income tax is
provided as follows:
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
£'000 £'000 £'000
(Loss) from Operations (274) (782) (325)
Depreciation, amortisation and impairment charges 104 134 252
Reported EBITDA (170) (648) (73)
Share based expense 72 - -
Exceptional Items - - -
Adjusted EBTIDA (loss) (98) (648) (73)
Adjusted EBITDA is an alternative performance measure. For further details
refer to the 31 December 2022 accounts.
7. Income statement information
a. Significant Items
Profit for the half year to 30 June 2023 includes no items that are unusual
because of their nature, size or incidence.
b. Income Tax
Income tax expense is recognised based on management's estimate. The Group
has significant tax losses in the UK brought forward from prior years and does
not expect to have to provide any material amount for tax.
Deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. The Group's projections show the expectation of
future profits, hence in 2018 a deferred tax asset was recognised. Reviews
were performed in subsequent years which has confirmed those expectations.
c. Loss per share
Earnings / Loss per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the Period. For diluted earnings per share the weighted
average number of ordinary shares in issue is adjusted to assume conversion of
all dilutive potential ordinary shares. Only those outstanding options that
have an exercise price below the average market share price in the Period have
been included. For each period, the issue of additional shares on exercise of
outstanding share options would decrease the basic loss per share and
therefore there is no dilutive effect.
The weighted average number of ordinary shares is calculated as follows:
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
'000 '000 '000
Number of issued ordinary shares at the start of period 330,515 330,515 330,515
Weighted average basic and diluted number of shares for period 330,515 330,515 330,515
£'000 £'000 £'000
Loss and total comprehensive expense (287) (787) (11)
Loss per share (0.09)p (0.24)p (0.0)p
8. Cash flow adjustments and changes in working capital
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
Total Total Total
£'000 £'000 £'000
Adjustment for non-cash items
Depreciation, amortisation and impairment of non-financial assets 104 134 252
Finance costs 13 5 40
Movement in right to use asset 50 - (30)
(Profit) on disposal of non-financial assets (5) (2) (4)
IFRS 16 interest adjustment (4) (1) (6)
Share-based payment expenses 72 - -
Total adjustments 230 136 244
Net changes in working capital:
Decrease / (increase) in inventories 26 (114) 196
Decrease / (increase) in trade and other receivables (10) (86) (1,147)
Decrease / (increase) in long term receivables 224 13 (169)
Increase / (decrease) in contract liabilities (11) (18) (7)
Increase / (decrease) in trade and other payables (364) 380 558
Total increase / (decrease) in working capital (135) 175 (569)
9. Called up share capital
Ordinary Share Capital 6 months to 30th June 2023 6 months to 30th June 2022 Year to 31st December 2022
Number £'000 Number £'000 Number £'000
At the beginning of the period 330,514,660 331 330,514,660 331 330,514,660 331
Arising on exercise of share options and warrants - - - - - -
Other issue for cash - - - - - -
At the end of the period 330,514,660 331 330,514,660 331 330,514,660 331
10. Borrowings
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
£'000 £'000 £'000
Current borrowings (due < 1 year)
Loan 112 - 132
Lease Debt 70 60 62
Total current borrowings 182 60 194
Non-current borrowings (due > 1 year)
Lease Debt 49 49 27
Total non-current borrowings 49 49 27
Total borrowings 231 109 221
11. Contingencies
The RiverFort EPSA was described in the 2020, 2021 and 2022 accounts. In
summary, in 2020 the company issued 14m ordinary shares and received a £1.5m
mezzanine loan under the RiverFort EPSA. At the same time under the EPSA the
company issued 14m shares and booked a sundry debt of £1.75m. The loan was to
be repaid and the sundry debt settled by selling down the shares. The
mezzanine loan was fully repaid in December 2020. As at the 30 June 2023
there remained shares still to be sold and a residual sundry debt for those
shares. Because of the low share price, had the remaining shares been sold at
30 June 2023 there would have been a loss of £1,054,000 (30 June 2022:
£1,066,000 and 31 Dec 2021: £1,041,000) on this debt. However, the shares
do not have to be fully sold at this time; and there is reason to believe that
it will be at a price higher in the future than the current price level which
will be enough to recoup the losses.
In February 2021, Clydesdale Bank PLC trading as Yorkshire Bank offered the
Group an overdraft and other banking facilities. As a condition of these
facilities the Company entered into a multilateral charge and guarantee in
respect of bank overdrafts and other facilities of all companies within the
Group.
12. Events after the Reporting Period
There were no material events which occurred after the Period end.
13. Copies of interim financial statements
A copy of these interim financial statements is available on the Company's
website, www.wsg-corporate.com (http://www.wsg-corporate.com) and from the
Company Secretary at the company's registered office, Westminster House,
Blacklocks Hill, Banbury, Oxfordshire, OX17 2BS.
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