ENGI.L Regulatory News (ENGI)

Energiser Investments Plc - Half-year Report

PR Newswire

London, September 28

 28 September 2017

Energiser Investments plc 

('Energiser' or the 'Company')

Posting of Interim Results to 30 June 2017

Energiser announces that it has posted its Interim accounts for the six months to 30 June 2017

Highlights

Dominic White, Chief Executive, commented

“We are pleased with the financial progress of Energiser over the period to June 2017. To maximise shareholder value, the Company is considering the sale of the Wellingborough portfolio which would further add to the capital available for investment into new opportunities; we look forwards to updating shareholders on progress in our micro self-storage strategy in due course.”

For further information, please visit http://www.energiserinvestments.co.uk/ or contact:

Energiser Investments plc +44 1494 762 450

Dominic White, Chief Executive

Nishith Malde, Director

Cairn Financial Advisers LLP +44 20 7213 0880

Jo Turner / Sandy Jamieson 

Energiser Investments plc

Energiser is an AIM quoted investing company investing predominantly in property operating platforms and associated assets in the self-storage, serviced-apartments and secured property lending sectors.

Chairman’s Statement

I am delighted to report on the Group’s Interim results for the six months to 30 June 2017.

I reported in the 2016 year end report that we maintained greater than 95% occupancy at the Wellingborough investment portfolio, saw the majority of the development loan repaid at the Kingswood, Surrey development and made great progress on the sourcing, analysis and negotiation of a number of potential transactions. We also raised new equity. I am pleased to say that we have continued to make exciting progress on the current portfolio and new potential transactions, such as the micro self-storage opportunity as announced on 13 June 2017.

Results

Energiser continues to hold the 20 residential properties at Wellingborough. The gross rental income from the portfolio for the six months to 30 June 2017 was £82,000 (2016: £77,000), an increase of 6.5% over the previous year. The net rental income, after relevant operating costs, increased 10.2% to £65,000 (2016: £59,000). Energiser’s administrative expenses have increased to £109,000 (2016: £35,000) for the half year, predominantly due to the effect of engaging our Chief Executive, Dominic White in October 2016 and further increases due to being a listed company. The loss before taxation improved to £81,000 (2016: £161,000) with loss per share of 0.07p (2016: 0.32p). Net assets have increased to £1,804,000 (2016: £340,000) principally due to crystallising a £765,000 performance related fee following successful completion of the Kingswood development, and, the £1.26 million of new equity raised in December 2016. This results in a 87.2% increase in net asset value per share to 1.46p (2016: 0.78p). The Directors do not recommend the payment of a dividend.

Operations

The 20 residential properties in Wellingborough, Northamptonshire, have continued to maintain their high level of occupancy at more than 95% over the period. As outlined in the last report, the Directors believe that the value of this portfolio is reaching a ceiling and that the associated capital could be better invested into new opportunities. The small size of the individual residential units and the strong letting history of the portfolio should be attractive to residential investors. The Directors are considering a sale of the properties in the coming months.

Energiser’s investment in the development funding of 12 residential properties in Kingswood, Surrey has successfully completed. The last unit was sold in the six months to June and all payments have been received. The back-to-back funding that Energiser raised relating to this investment has also been repaid in full.

In June, Energiser committed to an initial investment of £0.6m with an industry leading self-storage entrepreneur, Paul Fahey, to help him launch a micro self-storage operator. Self-storage is a fast growing industry in the UK. Traditionally, self-storage facilities operate in large stores positioned on the edge of towns and cities. Micro self-storage focuses on smaller facilities within dense urban centres and on the edge of smaller towns. Due diligence relating to the acquisition of the first micro self-storage facility is underway. We are in parallel working on potential corporate opportunities to accelerate our entry into this sector.

Outlook

The Group’s strategy is to focus on and engage in investment opportunities within the real estate sector, in particular in real estate operating companies. Our focus has been on three areas – residential, self-storage and short-term property lending. We are currently focused on ways to realise the equity within our Wellingborough portfolio so that it can be recycled into new opportunities with higher potential returns, and, the live opportunities in the self-storage sector.

We look forward to sharing more details of Energiser’s progress with shareholders in the coming months.

Stephen Wicks

Non-executive Chairman

28 September 2017

Group statement of comprehensive income

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

Group statement of changes in equity

Group statement of cash flows

1. Nature of operations and general information

The principal activity of the Group is as an investment company investing in quoted and unquoted companies to achieve capital growth. The Group also holds a property development acquired by way of its principal activity. The properties are held for sale with rental income arising from short term lets.

Energiser Investments plc is the Group’s ultimate parent company. It is incorporated and domiciled in Great Britain. The address of Energiser Investments plc’s registered office, which is also its principal place of business, is Decimal Place, Chiltern Avenue, Amersham, Buckinghamshire, HP6 5FG.

Energiser Investments plc’s shares are quoted on AIM, a market operated by the London Stock Exchange. The consolidated half-yearly financial report has been approved for issue by the Board of Directors on 28 September 2017.

The financial information set out in this half-yearly financial report does not constitute statutory accounts as defined in Sections 434(3) and 435(3) of the Companies Act 2006. The Group’s statutory financial statements for the year ended 31 December 2016 have been filed with the Registrar of Companies and are available at http://www.energiserinvestments.co.uk/. The auditor’s report on those financial statements was unqualified and did not contain any statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

2. Basis of preparation

This consolidated half-yearly financial report has been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting.

The consolidated half-yearly financial report should be read in conjunction with the annual financial statements for the year ended 31 December 2016, which have been prepared in accordance with IFRS as adopted by the European Union.

3. Accounting policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2016.

4. Loss per ordinary share

The loss per ordinary share is based on the weighted average number of ordinary shares in issue during the period of 123,912,956 ordinary shares of 0.1p (2016: 43,787,956 ordinary shares of 0.1p) and the following figures:

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.

5. Income and segmental analysis

The activity of both the investments and rentals arose wholly in the United Kingdom. No single customer accounts for more than 10% of revenue.

6. Investment property