ENGI.L Regulatory News (ENGI)

Energiser Investments plc

Final results for the year ended 31 December 2010

Chairman's Statement

I am pleased to report that the year ended 31 December 2010 has resulted in increased net assets over the previous period. Although the year was one which saw a change of Government to a coalition with a budget set for sharp cuts and hopefully a quicker recovery, the Group has seen little movement in its main investment, comprising our development of residential houses in Wellingborough.

Results

The profit before tax for the year ended 31 December 2010 was £68,000 (2009: £531,000) and this has primarily been achieved by settling the Company's loan note to Billam AG, giving a profit of £297,000 prior to a notional interest charge of £64,000 resulting in a contribution to operating profits of £233,000. The basic earnings per share (EPS) is 0.21p (2009: 1.87p). In my interim report for the six months to 30 June 2010, I had emphasised that the profit arising from the settlement of the Billam AG loan note was a one-off occurrence and that the second half year's results would not match that of the first half. The Group's net assets have increased by 33% from £255,000 to £339,000 at the year end, representing net asset value per share of 1.06p (2009: 0.80p).

Shareholders will recall that the Company's largest shareholder, Stephen Wicks, provided financial support to the Group and, as at the year end, there was no outstanding balance due to him. The Group has borrowed funds from third parties which are repayable on demand and Mr Wicks has agreed to provide further financial support to the Group for the foreseeable future, if required. 

Operations

Having disposed of our entire holding of shares in Physiomics plc we no longer have any significant listed investments within our portfolio at the end of the year. Having said that, the Company continues to hold its investment in EiRx Therapeutics PLC (ETP) amounting to 12.5% of its issued share capital. We have previously made a full provision against this holding. ETP recently sent a circular to its shareholders looking to raise funds to assist it in financing the due diligence work required for a major transaction. ETP intends to become a vehicle, listed on the AIM market, owning a majority interest in a portfolio of early stage healthcare companies with varying revenue streams and value inflexion points. On 8 April 2011, ETP announced that it had raised £230,000 by the issue of 127,383,433 ordinary shares of 0.001p at 0.18p per share. ETP plans to create a specialist life sciences investment and management business aimed at mitigating the risks associated with early-stage companies in the sector.

Our development of 29 houses in Wellingborough was completed during the year. We have disposed of nine houses and have 20 houses left which are available for sale and which because of thedifficulties in the property market are currently being let on short term leases. The rental income from this development has increased by 148% from £54,000 to £134,000 gross income for the year ended 31 December 2010. All the properties are currently let, generating gross annual rental income of £147,000. During the year the Group entered into a five year term loan with Barclays Bank for £1.36m secured against these properties. The terms of the loan required £900,000 to be hedged so as to fix the base rate at 1.98%. The loan attracts a margin of 2.75% above the base rate. To date there has been no difficulty in finding tenants for these properties due to the buoyant rental market in this location and the desirability of the development. However, if a downturn in the rental market occurs before mortgage availability improves it could result in unlet properties and a decrease in cash flow. This eventuality would increase the Group's reliance on the support of Mr Wicks in order to meet the monthly payments on the term loan, but this would only be likely if occupancy dropped below approximately 60% from the current level of almost 100%.

Outlook

The Group's principal asset is its residential development at Wellingborough and the future value of this asset is dependent on the conditions of the residential property market in the UK. We are pleased at the popularity of this project amongst tenants and expect this to continue in the short term. We are actively seeking further investment opportunities in other sectors and will inform shareholders of any progress in due course.

Simon Bennett

Chairman

24 May 2011

Report of the Directors

Results and dividends

The net profit of the Group for the year before and after taxation amounted to £68,000 (2009: profit of £531,000). The Directors do not recommend the payment of a dividend for the year ended 31 December 2010.

The net assets of the Group at 31 December 2010 totalled £339,000 (2009: net assets of £255,000). The net assets per ordinary share as at 31 December 2010 were 1.06p (2009: net assets per ordinary share of 0.8p).

A more detailed review of the activity and progress of the business including the portfolio of investments and the principal risks and uncertainties faced by the business (being the current economic climate and specifically the downturn in the housing market), is contained in the Chairman's Statement on pages 1 to 2.

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:

Ø the underlying share price of the investments;

Ø the returns on project finance (at the year end the only project, comprising the Wellingborough development, was fully let out under operating leases); and

Ø the net assets position of the Group including net assets per share (2010: net assets per share of 1.06p; 2009: net assets per share of 0.8p).

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 of investments and the liquidity risk, the undertaking to provide funding given by Mr S D Wicks 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.

ON BEHALF OF THE BOARD

Nishith MaldeCompany Secretary24 May 2011

Group Income Statement

For the year ended 31 December 2010

Diluted earnings per share is taken as equal to basic earnings 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 2010

Group Statement of Changes in Equity

For the year ended 31 December 2010

Group Statement of Cash Flows

For the year ended 31 December 2010

Note:

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2010 or 2009 but is derived from those accounts. Statutory accounts for 2009 have been delivered to the registrar of companies, and those for 2010 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 2009 or 2010.

The AGM will be held at 2 Anglo Office Park, 67 White Lion Road, Amersham, Buckinghamshire, HP7 9FB at 12 noon on 28 June 2011.

The Company's Annual Report and Accounts will be posted to shareholders on 6 June 2011 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 7600 1658