30 Sep 2009 07:00
Energiser Investments plc Condensed Consolidated Interim Financial statements for the period ended 30 June 2009
Chairman's Statement
Background
The Board of Energiser Investments Plc ("Energiser" or "the Company"), announces its interim results for the six months to 30 June 2009.
Shareholders will have relatively recently received the annual report and accounts of Energiser for the year ended 31 December, 2008. In my Chairman's statement which accompanied the accounts, I noted that 2008 had witnessed a severe impact on the world's equity markets occasioned by the collapse of Lehman Brothers and the subsequent crisis in the banking sector. Subsequently the world's governments threw billions of dollars at the banks to prevent systemic collapse and slashed interest rates to prevent a worldwide recession.
As I write this statement, the world's equity markets and corporate bond markets have staged a remarkable recovery. For example, the quoted UK property sector has risen over 80 per cent since March, 2009 as companies have rushed to rebuild their balance sheets with highly discounted rights issues. Over £5 billion has been raised by the quoted property sector this year, which is but a mere fraction of the estimated £225 billion that has been lent to property companies, both public and private, in the last 10 years by banks. This demonstrates how much of the economic activity and growth in recent times has been funded with cheap debt.
There have been many reports recently that the recession in the UK is over. Barring any unforeseen surge in the economy, interest rates are likely to remain low and there will continue to be fiscal stimulus for the foreseeable future. Government borrowing is predicted to be over £175 billion this fiscal year and our huge debt pile has been caused by profligate public spending in the good years and the bail out of the banks in more recent times. I stand by my comments in my last statement to shareholders that the worst is probably now behind us, but I remain of the view that there will be many bumps along the road. The key challenge for policy makers in the future is to find ways of channelling the next upsurge of financial activity into more sustainable investments than previously.
RESULTS
Set against the backdrop of the rising UK equity market, I am reporting today a loss before taxation of £0.14 million (2008: loss £0.84 million), which whilst far from satisfactory represents a significant reduction in the losses of £ 1.25 million incurred in 2008. The basic loss per share was 0.52p (2008: loss per share 7.91p). The net liabilities of Energiser have therefore increased to £0.54 million from the £0.4 million I reported at 31 December, 2008 and the £0.1 million for the comparative period last year. This increase in the Company's net liabilities is largely as a result of the loss incurred in the 6 months ended 30 June, 2009.
The directors do not intend to recommend a dividend.
DEVELOPMENT FUNDING LIMITED
As I have reported previously conditions in the UK housebuilding industry continue to be in depressed and recovery is still some way off. Following the demise of the building contractor to whom the company had provided mezzanine funding at its first development in Wellingborough, Northamptonshire, Development Funding Limited ("DFL") took full control of the site earlier this year. The development comprises 29 new freehold houses and I can report that 9 houses have been sold and a further 10 houses have been rented out to tenants.
The Board continues to remain cautious of the UK housebuilding market at present and it is unlikely that until market conditions substantially improve that DFL will consider making further loans to housebuilders.
The total cost of the development now amounts to £2.3 million. Part of the funding for DFL's investment has been provided by Mr Stephen Wicks, Energiser's largest shareholder who owns nearly 57 per cent of the Company's issued share capital. At 30 June, 2009 Mr Wicks had lent Energiser £0.92 million (2008: loan of £0.87 million) on commercial terms, which is secured on the assets of the Company and DFL. The Board has agreed with Mr Wicks that his outstanding loan will not be repayable for a minimum of twelve months unless the Company is able to do so. Energiser continues to rely on financial support from Mr Wicks, which he has continued to provide on a secured basis at 1% above base rates. This support is expected to continue for the foreseeable future and constitutes a related party transaction under the AIM rules for companies and accordingly the Directors consider, having consulted the Company's nominated advisor, that the terms of the facility are fair and reasonable insofar as shareholders are concerned.
We have two remaining investments in our portfolio and I comment on both below:
AIM LISTED INVESTMENTS
Inland plc
Inland continues to implement its land strategy but over the last six months market conditions have continued to worsen. We continue to make progress in developing our land bank and have made progress on a number of commercial opportunities.
Since June 2008 Inland has not acquired any sites as principles with the focus being on securing planning permissions. Despite worsening economic conditions, planning authorities continue to frustrate the planning process with a substantial number of planning consents being obtained on appeal.
Physiomics plc
Physiomics plc ("Physiomics") is a European computational systems biology services company which applies simulations of cell behaviour to drug development companies aimed at reducing the high attrition rates of clinical trials. The commercial rationale for Physiomics services is that it is estimated that the cost of bringing a new drug to market is $800 million and that 80 to 90 per cent of all clinical drug candidates fail. There is increasing evidence that the major pharmaceutical companies are using more sophisticated technology to shorten the discovery process thereby reducing the overall cost associated with it.
In February, 2009 Physiomics announced its interim results for the 6 months ended 31 December, 2008 which showed a maiden albeit modest profit before taxation of £3,000 (2007: loss before taxation of £194,000) on a near fourfold increase in revenue of £210,000 (2007: revenue of £55,000).
In April, 2009 Physiomics announced the signing of a further licence agreement with the global pharmaceutical company Eli Lilly. The licence will allow Eli Lilly to use the version of the company's simulation platform for in-house modelling of anti cancer drugs. This is the first time that Physiomics have licensed their technology externally to a third party.
Physiomics results for the year ended 30 June, 2009 are expected to be announced shortly.
EIRX PHARMA LIMITED
Energiser owned its shareholding in Physiomics through a 39.2 per cent shareholding in EiRx Pharma Limited which was put into members' voluntary liquidation last year. I can report that the shares in Physiomics owned by that company, which had a surplus of assets, have now been distributed in specie to the shareholders of EiRx Pharma Limited by the liquidators.
OUTLOOK
Notwithstanding the improvement in sentiment in the UK housing market, your Board continues to be cautious about the short term outlook for DFL, our development funding business. We will continue to be cautious until there is evidence of a more sustained economic recovery and credit becomes more readily available.
Simon Bennett
30 September 2009
Condensed consolidated income statement
| Unaudited 6 months to 30 June 2009 | Unaudited 6 months to 30 June 2008 | Audited Year to 31 December 2008 | |
| Note | £'000 | £'000 | £'000 |
| Continuing operations | |||
| Net profit/(losses) on investments | 15 | (675) | (936) |
| Revenue | 37 | 39 | 55 |
| Cost of sales | - | - | (382) |
| --------------- | --------------- | --------------- | |
| Gross profit/(loss) | 52 | (636) | (1,263) |
| Administrative costs | (142) | (183) | (132) |
| Finance costs | (57) | (50) | (166) |
| Finance income | - | 30 | 311 |
| --------------- | --------------- | --------------- | |
| Loss before tax | (147) | (839) | (1,250) |
| Income tax expense | - | - | - |
| --------------- | --------------- | --------------- | |
| Loss for the period | (147) | (839) | (1,250) |
| ============ | ============ | ============ | |
| Loss per share: | |||
| Basic and diluted loss per share from total and continuing operations 4 | (0.52)p | (7.91)p | (10.24)p |
| ============ | ============ | ============ |
Condensed consolidated balance sheet
| Unaudited 30 June 2009 | Unaudited 30 June 2008 | Audited 31 December 2008 | |||||
| Note | £'000 | £'000 | £'000 | ||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Financial assets at fair value through profit and loss 3 | 193 | 1,052 | 266 | ||||
| --------------- | --------------- | --------------- | |||||
| Current assets Inventories | 2,252 | - | 2,126 | ||||
| Loans and receivables | - | 1,229 | - | ||||
| Trade and other receivables | 29 | 31 | 245 | ||||
| Other current assets | 171 | 210 | - | ||||
| Cash and cash equivalents | 8 | - | 43 | ||||
| --------------- | --------------- | --------------- | |||||
| 2,460 | 1,470 | 2,414 | |||||
| --------------- | --------------- | --------------- | |||||
| Total assets | 2,653 | 2,522 | 2,680 | ||||
| --------------- | --------------- | --------------- | |||||
| LIABILITIES | |||||||
| Current liabilities | |||||||
| Trade and other payables | 415 | 536 | 405 | ||||
| Short-term borrowings | 2,431 | 1,806 | 2,338 | ||||
| --------------- | --------------- | --------------- | |||||
| 2,846 | 2,342 | 2,743 | |||||
| --------------- | --------------- | --------------- | |||||
| Non-current liabilities | |||||||
| Long-term borrowings | 325 | 308 | 316 | ||||
| Other payables | 20 | - | 20 | ||||
| --------------- | --------------- | --------------- | |||||
| Total non-current liabilities | 345 | 308 | 336 | ||||
| --------------- | --------------- | --------------- | |||||
| Total liabilities | 3,191 | 2,650 | 3,079 | ||||
| --------------- | --------------- | --------------- | |||||
| Net liabilities | (538) | (128) | (399) | ||||
| ============ | ============ | ============ | |||||
| EQUITY | |||||||
| Equity attributable to equity holders of the parent | |||||||
| Share capital | 2,296 | 2,279 | 2,296 | ||||
| Share premium account | 5,538 | 5,423 | 5,538 | ||||
| Convertible loan | 88 | 88 | 88 | ||||
| Merger reserve | 1,012 | 1,012 | 1,012 | ||||
| Profit and loss account | (9,472) | (8,930) | (9,333) | ||||
| --------------- | --------------- | --------------- | |||||
| Total equity | (538) | (128) | (399) | ||||
| ============ | ============ | ============ | |||||
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2009
| Unaudited 6 months to 30 June 2009 | Unaudited 6 months to 30 June 2008 | Audited Year to 31 December 2008 | |
| £'000 | £'000 | £'000 | |
| Loss for the period | (147) | (839) | (1,250) |
| Other comprehensive income: | |||
| Share based compensation | 8 | 8 | 16 |
| ______ | ______ | ______ | |
| Other comprehensive income for the period, net of tax | 8 | 8 | 16 |
| ______ | ______ | ______ | |
| Total comprehensive income for the period | (139) | (831) | (1,234) |
| ============ | ============ | ============ |
Condensed consolidated statement of changes in equity
| Share capital | Share premium account | Convertible Loan | Merger reserve | Profit and Loss account | Total equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance at 31 December 2007 | 2,279 | 5,423 | 88 | 1,012 | (8,099) | 703 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Share based compensation |
| - |
| - | 8 | 8 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Transactions with owners | - | - | - | - | 8 | 8 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Loss for the period | - | - | - | - | (839) | (839) |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Balance at 30 June 2008 | 2,279 | 5,423 | 88 | 1,012 | (8,930) | (128) |
| ============ | ============ | ============ | ============ | ============ | ============ |
Condensed consolidated statement of changes in equity (continued)
| Share capital | Share premium account | Convertible loan | Merger reserve | Profit and loss | Total equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance at 31 December 2007 | 2,279 | 5,423 | 88 | 1,012 | (8,099) | 703 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Issue of equity | 17 | 115 | - | - | - | 132 |
| Share based compensation | - | - | - | - | 16 | 16 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Transactions with owners | 17 | 115 | - | - | 16 | 148 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Loss for the period | - | - | - | - | (1,250) | (1,250) |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Balance at 31 December 2008 | 2,296 | 5,538 | 88 | 1,012 | (9,333) | (399) |
| ============ | ============ | ============ | ============ | ============ | ============ |
Condensed consolidated statement of changes in equity (continued)
| Share capital | Share premium account | Convertible loan | Merger reserve | Profit and loss account | Total equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance at 31 December 2008 | 2,296 | 5,538 | 88 | 1,012 | (9,333) | (399) |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Share based compensation | - | - | - | - | 8 | 8 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Transactions with owners | - | - | - | - | 8 | 8 |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Loss for the period | - | - | - | - | (147) | (147) |
| --------------- | --------------- | --------------- | --------------- | --------------- | --------------- | |
| Balance at 30 June 2009 | 2,296 | 5,538 | 88 | 1,012 | (9,472) | (538) |
| ============ | ============ | ============ | ============ | ============ | ============ | |
Condensed consolidated cash flow statement
| Unaudited 6 months to 30 June 2009 | Unaudited 6 months to 30 June 2008 | Audited Year to 31 December 2008 | |
| £'000 | £'000 | £'000 | |
| Cash flows from operating activities | |||
| Loss after taxation | (147) | (839) | (1,250) |
| Adjustments for: | |||
| Fair value adjustments | (36) | 675 | 781 |
| Loss on sale of investments | 22 | 1 | 155 |
| Interest expense | 57 | 50 | 166 |
| Increase in trade and other receivables | 45 | (235) | (310) |
| Increase/(decrease) in trade payables | (10) | 101 | (69) |
| Interest received | - | (30) | (311) |
| Share option charge | 8 | 8 | 16 |
| Write down to inventories to net realisable value | - | - | 381 |
| Increase in stocks | (126) | - | - |
| --------------- | --------------- | --------------- | |
| Net cash flow from operating activities | (187) | (269) | (441) |
| --------------- | --------------- | --------------- | |
| Cash flows from investing activities | |||
| Purchase of investments | (45) | (85) | (155) |
| Proceeds from sale of investment | 132 | 8 | 604 |
| --------------- | --------------- | --------------- | |
| Net cash used in investing activities | 87 | (77) | 449 |
| --------------- | --------------- | --------------- | |
| Cash flows from financing activities | |||
| Interest paid | (15) | - | - |
| Proceeds from short-term borrowings | 73 | 285 | 374 |
| Re-payment of short term borrowings | (12) | - | (335) |
| --------------- | --------------- | --------------- | |
| Net cash used in financing activities | 46 | 285 | 39 |
| --------------- | --------------- | --------------- | |
| Net (decrease)/increase in cash and cash equivalents | (54) | (61) | 47 |
| Cash and cash equivalents at beginning of period | 43 | (4) | (4) |
| --------------- | --------------- | --------------- | |
| Cash and cash equivalents at end of period | (11) | (65) | 43 |
| ============ | ============ | ============ |
Notes to the condensed consolidated interim financial statements
The financial information set out in this interim report does not constitute statutory accounts as defined within the meaning of Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2008, prepared under International Financial Reporting Standards ("IFRS"), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Sections 498(2) or (3) of the Companies Act 2006.
1. Basis of preparation
These interim condensed consolidated financial statements are for the six months ended 30 June 2009 and have been prepared under the historical cost convention, except for the revaluation of certain nonߛcurrent assets and financial assets and liabilities.
The presentation of these interim condensed consolidated financial statements has been changed to that required by the revised IAS 1 "Presentation of Financial Statements".
These condensed consolidated financial statements (the interim financial statements) have been prepared in accordance with the accounting policies set out below which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU).
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated financial statements.
2. Summary of significant accounting policies
Basis of consolidation
The Group financial statements consolidate those of the Company and all of its subsidiary undertakings drawn up to 30 June 2009. Subsidiaries are entities over which the Group has the power to control the financial and operating policies so as to obtain benefits from its activities. The Group obtains and exercises control through voting rights.
Unrealised gains on transactions between the Company and its subsidiaries are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Acquisitions of subsidiaries are dealt with by the purchase method. The purchase method involves the recognition at fair value of all identifiable assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date, regardless of whether or not they were recorded in the financial statements of the subsidiary prior to acquisition. On initial recognition, the assets and liabilities of the subsidiary are included in the consolidated balance sheet at their fair values, which are also used as the bases for subsequent measurement in accordance with the group accounting policies. Goodwill is stated after separating out identifiable intangible assets. Goodwill represents the excess of acquisition cost over the fair value of the Group's share of the identifiable net assets of the acquired subsidiary at the date of acquisition.
Business combinations completed prior to date of transition to IFRS
The Group has elected not to apply IFRS3 Business Combinations retrospectively to business combinations prior to the date of transition.
Accordingly the classification of the combination (merger) remains unchanged from that used under UK GAAP. Assets and liabilities are recognised at date of transition if they would be recognised under IFRS, and are measured using their UK GAAP carrying amount immediately post-acquisition as deemed cost under IFRS, unless IFRS requires fair value measurement. Deferred tax and minority interest are adjusted for the impact of any consequential adjustments after taking advantage of the transitional provisions.
Goodwill
Goodwill representing the excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired, is capitalised and reviewed annually for impairment. Goodwill is carried at cost less accumulated impairment losses. Negative goodwill is recognised immediately after acquisition in the income statement.
Goodwill written off to reserves prior to date of transition to IFRS remains in reserves. There is no reߛinstatement of goodwill that was amortised prior to transition to IFRS. Goodwill previously written off to reserves is not written back to profit or loss on subsequent disposal.
Revenue
Revenue is measured by reference to the fair value of consideration received or receivable by the Group for services provided and the sale of investments, excluding VAT and discounts. Revenue is recognised upon the performance of services or transfer of risk to the customer.
Sale of properties
Revenue from the sale of properties is recognised when all the following conditions have been satisfied:
the Group has unconditionally exchanged and completed a contract for the sale of the property which is generally when the title passes.
the amount of revenue can be measured reliably.
it is probable that the economic benefits associated with the transaction will flow to the purchaser; and
the cost incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of servicesServices represent management fees excluding VAT.
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the balance sheet date. The outcome of the transaction is deemed to be able to be estimated reliably when all the following conditions are satisfied:
the amount of revenue can be measured reliably
it is probable that the economic benefits associated with the transaction will flow to the entity
the stage of completion of the transaction at the balance sheet date can be measured reliably
the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Where a contract involves delivery of several different elements and is not fully delivered or performed by the year end, revenue is recognised based on the proportion of the fair value of the elements delivered to the fair value of the overall contract.
Rent receivable
Revenue includes rent receivable (excluding VAT) from third parties and is recognised in the period to which the rental relates.
Interest
Interest is recognised using the effective interest method which calculates the amortised cost of a financial asset and allocates the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Dividends
Dividends are recognised when the shareholders right to receive payment is established.
Taxation
Current tax is the tax currently payable based on taxable profit for the period.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is also charged or credited directly to equity.
Financial assets
Financial assets are divided into the following categories: loans and receivables and financial assets at fair value through profit or loss. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which they were acquired. The designation of financial assets is re-evaluated at every reporting date at which a choice of classification or accounting treatment is available.
All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets other than those categorised as at fair value through profit or loss are recognised at fair value plus transaction costs. Financial assets categorised as at fair value through profit or loss are recognised initially at fair value with transaction costs expensed through the income statement.
Financial assets at fair value through profit or loss include financial assets that are either classified as held for trading or are designated by the entity as at fair value through profit or loss upon initial recognition. Subsequent to initial recognition, the financial assets included in this category are measured at fair value with changes in fair value recognised in the income statement. Financial assets originally designated as financial assets at fair value through profit or loss may not be reclassified subsequently.
Financial assets are designated as at fair value through profit or loss where they are managed and their performance evaluated on a fair value basis in accordance with the Group's documented investment strategy.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables and certain other current assets are classified as loans and receivables. Loans and receivables are measured subsequent to initial recognition at amortised cost using the effective interest method, less provision for impairment. Any change in their value through impairment or reversal of impairment is recognised in the income statement.
Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows.
An assessment for impairment is undertaken at least at each balance sheet date.
A financial asset is derecognised only where the contractual rights to the cash flows from the asset expire or the financial asset is transferred and that transfer qualifies for derecognition. A financial asset is transferred if the contractual rights to receive the cash flows of the asset have been transferred or the Group retains the contractual rights to receive the cash flows of the asset but assumes a contractual obligation to pay the cash flows to one or more recipients. A financial asset that is transferred qualifies for derecognition if the Group transfers substantially all the risks and rewards of ownership of the asset, or if the Group neither retains nor transfers substantially all the risks and rewards of ownership but does transfer control of that asset.
Financial liabilities
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities are recorded initially at fair value, net of direct issue costs.
They are recorded at amortised cost using the effective interest method, with interest-related charges recognised as an expense in finance cost in the income statement. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are charged to the income statement on an accruals basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires. When the obligation is extinguished by conversion to equity, a gain or loss is recognised in respect of the difference between the carrying value of the debt compared to the fair value of the shares issued.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
Financial instruments and IFRS 1 - exemptions utilised by the Group
Designation of previously recognised financial instruments
The Group has elected to designate certain financial instruments at the date of transition to IFRS as a financial asset or financial liability at fair value through profit or loss.
Equity
Equity comprises the following:
"Share capital" represents the nominal value of equity shares.
"Share premium" represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue.
"Profit and loss reserve" represents retained profits.
"Merger reserve" represents the excess of the nominal value of shares issued in the acquisition of a subsidiary undertaking and the nominal value of those shares.
Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Non-monetary items that are measured at historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
Any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were initially recorded are recognised in the profit or loss in the period in which they arise. Exchange differences on non-monetary items are recognised in the statement of changes in equity to the extent that they relate to a gain or loss on that non-monetary item taken to the statement of recognised income and expenses, otherwise such gains and losses are recognised in the income statement.
3. Additions and disposals of investments
The following tables shows the significant additions and disposals of investments.
| Listed | Unlisted investments | Total | |
| £'000 | £'000 | £'000 | |
| Carrying amount at 1 January 2009 | 217 | 49 | 266 |
| Purchases | 45 | - | 45 |
| Disposals | (154) | - | (154) |
| Fair value adjustments | 36 | - | 36 |
| --------------- | --------------- | --------------- | |
| Carrying amount at 30 June 2009 | 144 | 49 | 193 |
| ============ | ============ | ============ |
| Listed | Other unlisted investments | Total | |
| £'000 | £'000 | £'000 | |
| Carrying amount at 1 January 2008 | 1,025 | 626 | 1,651 |
| Additions | 85 | - | 85 |
| Disposals | (9) | - | (9) |
| Fair value adjustments | (98) | (577) | (675) |
| --------------- | --------------- | --------------- | |
| Carrying amount at 30 June 2008 | 1,003 | 49 | 1,052 |
| ============ | ============ | ============ |
| Listed | Other unlisted investments | Total | |
| £'000 | £'000 | £'000 | |
| Carrying amount at 1 January 2008 | 1,025 | 626 | 1,651 |
| Additions | 155 | - | 155 |
| Disposals | (759) | - | (759) |
| Fair value adjustments | (204) | (577) | (781) |
| --------------- | --------------- | --------------- | |
| Carrying amount at 31 December 2008 | 217 | 49 | 266 |
| ============ | ============ | ============ |
4. Basic and diluted loss per share from total and continuing operations
The calculation of the basic loss per share is based on the losses attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
The losses and weighted average number of shares used in the calculations are set out below.
6 months to 30 June 2009
| Losses attributable to ordinary shareholders | £147,000 | ||
| --------------- | |||
| Weighted average number of shares | 28,309,596 | ||
| --------------- | |||
| Basic loss per share | (0.52)p | ||
| ============ | |||
| 6 months to 30 June 2008 | |||
| Losses attributable to ordinary shareholders | £(839,000) | ||
| --------------- | |||
| Weighted average number of shares | 10,603,835 | ||
| --------------- | |||
| Basic loss per share | (7.91)p | ||
| ============ | |||
| Year ended 31 December 2008 | |||
| Losses attributable to ordinary shareholders | £(1,250,000) | ||
| --------------- | |||
| Weighted average number of shares | 12,204,639 | ||
| --------------- | |||
| Basic earnings per share | (10.24)p | ||
| ============ |
Diluted earnings per share is taken as equal to basic earnings per share as the Group has recorded a loss and therefore the effect of including share options is anti-dilutive.
COMPANY INFORMATION
The Company is a public limited company registered in England and Wales. The registered office and principal place of business is 2 Anglo Office Park, 67 White Lion Road, Amersham, Bucks. HP7 9FB
The Company's interim results are available to view at the Company's website: www.energiserinvestments.co.uk