5 Jun 2013 07:00
ENERGISER INVESTMENTS PLC
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012
CHAIRMAN'S STATEMENT
The following represents my report to shareholders on the results for the year ended 31 December 2012 and the financial position at that date. As mentioned in the last annual report, 2012 experienced the first "double-dip" recession since the economic turmoil of 1975. Notwithstanding, the Group's principal property asset located in Wellingborough, Northamptonshire, generated a modest increase in gross rental income. The carrying value of this property portfolio has remained at a similar level to the previous year end. The expenditure incurred in the production of a concept prototype motor has been written off as there have been a number of technical issues which have resulted in it being classified as development expenditure which does not fit the criteria to be capitalised. The Board is evaluating its current status.
Results
Our residential development in Wellingborough generated gross rental income of £149,000 and after associated operating costs resulted in net rental income of £117,000. In addition, the Group wrote off £116,000 invested in the production of the high powered motor. Administrative expenses have reduced to £84,000 (2011: £116,000) and after finance costs of £100,000 (2011: £124,000) the loss before and after taxation was £171,000 (2011: £124,000) resulting in a loss per share of 0.39p (2011: 0.24p).
The Group's net assets have decreased to £169,000 (2011: £340,000) representing net asset value per share of 0.39p (2011: 0.78p). Net asset value per share is calculated by dividing the net assets of the Group by the number of ordinary shares in existence at the balance sheet date.
The directors do not recommend the payment of a dividend.
The Group's largest shareholder, Stephen Wicks, has agreed to provide further financial support to the Group for the foreseeable future, if required. As at the year end there were no loans due to Mr Wicks.
Operations
The Group continues to hold an investment in EiRx Therapeutics PLC ("ETP") which has previously been fully provided against.
Our development of 20 residential properties in Wellingborough is currently generating a gross annual rental income of £142,000 as one of the properties is vacant. The properties are continuing to be let on short term tenancies whilst the residential property market is recovering and it is still the intention of the Board to sell them. As part of our search for investment opportunities the Group had identified a brownfield site with planning consent for nine houses with completion expected in December 2012. However this transaction did not proceed.
As I stated in the interim report, much progress had been made in the project to produce a pre-production version of a prototype motor with applications in the leisure industry, however due to technical issues that have not yet been resolved the Board is evaluating the status for further investment in this project.
Outlook
The Board will continue to search for new investment opportunities whilst continuing to maximise the rental income from the Group's property portfolio.
Simon Bennett
Chairman
4 June 2013
DIRECTORS' REPORT
Results and dividends
The net loss of the Group for the year before and after taxation amounted to £171,000 (2011: loss of £124,000). The Directors do not recommend the payment of a dividend for the year ended 31 December 2012.
The net assets of the Group at 31 December 2012 totalled £169,000 (2011: net assets of £340,000). The net assets per ordinary share as at 31 December 2012 were 0.39p (2011: net assets per ordinary share of 0.78p).
A more detailed review of the activity and progress of the business, including the portfolio of investments, is contained in the Chairman's Statement.
Whilst the Group currently has limited investments in quoted or unquoted companies, as referred to above, the Group's principal activity is that of investing in companies. Accordingly, the main Key Performance Indicators used by the business are:
• the returns on project investment (at the year end the only project, comprising the Wellingborough development, was fully let out under short-term operating leases whilst being held for sale producing a return of £116,000; 2011: £99,000); and
• the net assets position of the Group including net assets per share (2012: net assets per share of 0.39p; 2011: net assets per share of 0.78p).
Going concern
The financial statements have been prepared on the going concern basis, the Directors having considered the cash forecasts for the next twelve months from the date of the approval of these financial statements. In doing so they have given due regard to the risks and uncertainties affecting the business, the liquidity risk, funding provided by Mr S D Wicks, who has undertaken to meet the cash needs of the Group if required, and the repayment of other loans. On this basis the Directors have a reasonable expectation that the funds available to the Group are sufficient to meet the requirements indicated by those forecasts.
Nishith Malde
Company Secretary
4 June 2013
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2012
2012 | 2011 | ||
£'000 | £'000 | ||
Continuing operations |
|
|
|
Revenue arising in the course of ordinary activities |
| 149 | 139 |
Other income |
| - | 70 |
Change in fair value of investments |
| - | (54) |
Development costs |
| (116) | - |
Cost of sales |
| (32) | (39) |
Gross Profit |
| 1 | 116 |
Administrative expenses |
| (84) | (116) |
Operating loss |
| (83) | - |
Finance costs |
| (100) | (124) |
Finance income |
| 12 | - |
Loss before taxation |
| (171) | (124) |
Taxation |
| - | - |
Loss for the year attributable to shareholders of the Company and total comprehensive income |
| (171) | (124) |
Loss per share |
|
|
|
Basic and diluted loss per share from total and continuing operations |
| (0.39)p | (0.24)p |
Diluted loss per share is taken as equal to basic loss per share as the Group's average share price during the period is lower than the exercise price and therefore the effect of including share options is anti-dilutive.
GROUP STATEMENT OF FINANCIAL POSITION
As at 31 December 2012
2012 | 2011 | ||
£'000 | £'000 | ||
ASSETS |
|
|
|
Non-current assets |
|
|
|
Financial assets held at fair value through profit or loss |
| 1 | 1 |
Current assets |
|
|
|
Inventories |
| 2,566 | 2,550 |
Trade and other receivables |
| 14 | 14 |
Cash and cash equivalents |
| 7 | 111 |
|
| 2,587 | 2,675 |
Total assets |
| 2,588 | 2,676 |
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
| 333 | 278 |
Short-term borrowings |
| 815 | 743 |
|
| 1,148 | 1,021 |
Non-current liabilities |
|
|
|
Long-term borrowings |
| 1,239 | 1,271 |
Financial liabilities held at fair value through profit or loss |
| 32 | 44 |
|
| 1,271 | 1,315 |
Total liabilities |
| 2,419 | 2,336 |
Net assets |
| 169 | 340 |
EQUITY |
|
|
|
Share capital |
| 2,312 | 2,312 |
Share premium account |
| 5,747 | 5,747 |
Convertible loan |
| 88 | 88 |
Merger reserve |
| 1,012 | 1,012 |
Retained earnings |
| (8,990) | (8,819) |
Total equity |
| 169 | 340 |
GROUP STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2012
Share | ||||||
Share | premium | Convertible | Merger | Retained | Total | |
capital | account | loan | reserve | earnings | equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 January 2011 | 2,300 | 5,641 | 88 | 1,012 | (8,702) | 339 |
Issue of equity | 12 | 106 | - | - | - | 118 |
Share-based compensation | - | - | - | - | 7 | 7 |
Transactions with owners | 12 | 106 | - | - | 7 | 125 |
Total comprehensive loss | - | - | - | - | (124) | (124) |
Total changes in equity | 12 | 106 | - | - | (117) | 1 |
Balance at 31 December 2011 | 2,312 | 5,747 | 88 | 1,012 | (8,819) | 340 |
Total comprehensive loss | - | - | - | - | (171) | (171) |
Balance at 31 December 2012 | 2,312 | 5,747 | 88 | 1,012 | (8,990) | 169 |
GROUP STATEMENT OF CASH FLOWS
For the year ended 31 December 2012
2012 | 2011 | |||
£'000 | £'000 | |||
Cash flows from operating activities |
|
|
| |
Loss before and after taxation |
| (171) | (124) | |
Adjustments for: |
|
|
| |
| Change in fair value of investments | - | 54 | |
| Fair value (gain)/loss on financial liabilities recognised in profit or loss | (12) | 44 | |
| Interest expense | 100 | 80 | |
| Decrease in trade and other receivables | - | 8 | |
| Increase in trade payables | 22 | 105 | |
| Share option charge | - | 7 | |
| Reversal of impairment of inventories | - | (94) | |
| Increase in inventories | (16) | (9) | |
Net cash generated by operating activities |
| (77) | 71 | |
Cash flows from investing activities |
|
|
| |
Purchase of investments |
| - | (54) | |
Net cash used in investing activities |
| - | (54) | |
Cash flows from financing activities |
|
|
| |
Proceeds from borrowings |
| 71 | 61 | |
Re-payment of borrowings |
| (31) | (43) | |
Interest paid |
| (67) | (50) | |
Net proceeds on issue of ordinary shares |
| - | 118 | |
Net cash (used in) / generated by financing activities |
| (27) | 86 | |
Net (decrease) / increase in cash and cash equivalents |
| (104) | 103 | |
Cash and cash equivalents at beginning of period |
| 111 | 8 | |
Cash and cash equivalents at end of period |
| 7 | 111 | |
Note:
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2012 or 2011 but is derived from those accounts. Statutory accounts for 2011 have been delivered to the registrar of companies, and those for 2012 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2011 or 2012.
The AGM will be held at 2 Anglo Office Park, 67 White Lion Road, Amersham, Buckinghamshire, HP7 9FB at 11.00 am on 28 June 2013.
The Company's Annual Report and Accounts will be posted to shareholders on 5 June 2013 and will be available to view and download on the Company's website at www.energiserinvestments.co.uk.
For further information contact:
Energiser Investments plc
Nishith Malde +44 (0) 1494 762450
finnCap Limited
Matthew Robinson +44 (0) 20 7220 0500