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 at www.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)

 




£000's

£000's

£000's

 

Non current assets






 

Non current Investments



41,053

37,563

 




41,053

37,563

41,053

 

Current assets






 

Trade and other receivables



154

2,574

 

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

 




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

 

Share premium



16,455

16,262

 

Share option reserve



845

862

 

Special reserve



66,837

66,837

 

Merger reserve



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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