Sign In
Last checked at 
6 Sep 2017 12:00
Tanfield Group Plc
("Tanfield", or "the Company")
Interim Results for the six-month period to 30 June 2017
Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2017. The unaudited financial information will shortly be 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 currently owns 49% of Snorkel International Holdings LLC ("Snorkel") and 5.76% of Smith Electric Vehicles Corp. ("Smith").
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
· Further sales growth achieved by Snorkel in the first six months of the year, up 13% compared to H1 2016 and profitable for the period.
· Snorkel carrying value is £36.3m which represents approximately 23p per share.
· Smith continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015.
Overview of investments
Based on the unauditied financial information received from Snorkel, during the first six months of 2017 the business achieved sales of $79.7m, an increase of 13% compared to the same period in 2016, with an operating profit, excluding depreciation, of $1.5m (H1 2016: $1.4m loss). Should the trend of sales growth continue for the remainder of the year, the Board believes 2017 could be a profitable year for the Snorkel business and is of the opinion that the investment in Snorkel will result in a return to shareholders in the future. However, at the current rate of growth it is not expected to materialise until after 30 September 2018, when the outcome becomes uncertain and the return to shareholders could therefore be greater or less than the current carrying value.
In 2015 the investment in Smith was impaired to nil due to the uncertainty around its future and the level of funding it required. The situation continues to be monitored and should some significant progress be made then an update will be provided.
For further information:
Tanfield Group Plc
Daryn Robinson 0700 349 7489
WH Ireland Limited - Nominated Advisor
James Joyce / Alex Bond 020 7220 1666
Peterhouse Corporate Finance - Broker
Peter Greensmith / Duncan Vasey 020 7220 9797
STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||
FOR THE SIX MONTHS ENDING 30 JUNE 2017 |
|
| |||||||||||||
|
|
|
| ||||||||||||
|
|
| Six months to 30 Jun 17 (unaudited) | Six months to 30 Jun 16 (unaudited) | Year to 31 Dec 16 (audited) |
| |||||||||
|
|
| £000's | £000's | £000's |
| |||||||||
|
|
|
|
|
|
| |||||||||
Revenue |
|
| - | - | - |
| |||||||||
Staff costs |
|
| (44) | (44) | (85) |
| |||||||||
Other operating income |
|
| 16 | 14 | 30 |
| |||||||||
Other operating expenses |
|
| (81) | (79) | (182) |
| |||||||||
(Loss)/profit from operations before impairments |
|
| (109) | (109) | (237) |
| |||||||||
Finance expense |
|
| - | (8) | (13) |
| |||||||||
Finance income |
|
| - | - | 1 |
| |||||||||
Net finance expense |
|
| - | (8) | (12) |
| |||||||||
|
|
|
|
| |||||||||||
Loss from operations before tax |
|
| (109) | (117) | (249) |
| |||||||||
Taxation |
|
| - | - | - |
| |||||||||
Loss & total comprehensive income for the period attributable to equity shareholders | (109) | (117) | (249) |
| |||||||||||
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
| |||||||||
Loss per share
|
|
|
|
|
|
| |||||||||
Earnings/(loss) per share from operations |
|
|
|
|
|
| |||||||||
Basic and diluted (p) |
|
| (0.1) | (0.1) |
(0.2) |
| |||||||||
|
|
|
|
|
|
| |||||||||
|
|
|
|
|
|
| |||||||||
BALANCE SHEET | |||||||||||
AS AT 30 JUNE 2017 |
|
| |||||||||
|
|
|
| ||||||||
|
|
| 30 Jun 17 (unaudited) | 30 Jun 16 (unaudited) | 31 Dec 16 (audited) |
| |||||
|
|
| £000's | £000's | £000's |
| |||||
Non current assets |
|
|
|
|
|
| |||||
Non current Investments |
|
| 36,283 | 36,283 | 36,283 |
| |||||
|
|
| 36,283 | 36,283 | 36,283 |
| |||||
Current assets |
|
|
|
|
|
| |||||
Trade and other receivables |
|
| 65 | 102 | 61 |
| |||||
Cash and cash equivalents |
|
| 166 | 364 | 269 |
| |||||
|
|
| 231 | 466 | 330 |
| |||||
|
|
|
|
|
|
| |||||
Total assets |
|
| 36,514 | 36,749 | 36,613 |
| |||||
|
|
|
|
|
|
| |||||
Current liabilities |
|
|
|
|
|
| |||||
Trade and other payables |
|
| 101 | 100 | 91 |
| |||||
|
|
| 101 | 100 | 91 |
| |||||
Non-current liabilities |
|
|
|
|
|
| |||||
Other payables |
|
| - | 262 | - |
| |||||
|
|
| - | 262 | - |
| |||||
|
|
|
|
|
|
| |||||
Total liabilities |
|
| 101 | 362 |
91 |
| |||||
|
|
|
|
|
|
| |||||
Equity |
|
|
|
|
|
| |||||
Share capital |
|
| 7,816 | 7,686 | 7,816 |
| |||||
Share premium |
|
| 17,190 | 17,053 | 17,190 |
| |||||
Share option reserve |
|
| 459 | 461 | 459 |
| |||||
Special reserve |
|
| 66,837 | 66,837 | 66,837 |
| |||||
Merger reserve |
|
| 1,534 | 1,534 | 1,534 |
| |||||
Retained earnings |
|
| (57,423) | (57,184) | (57,314) |
| |||||
Total equity |
|
| 36,413 | 36,387 | 36,522 |
| |||||
|
|
|
|
|
|
| |||||
Total equity and total liabilities |
|
| 36,514 | 36,749 | 36,613 |
| |||||
|
|
|
|
|
|
| |||||
| |||||||||||
STATEMENT OF CHANGES IN EQUITY |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH FLOW STATEMENT | |||||||
FOR THE SIX MONTHS ENDING 30 JUNE 2017 |
|
| |||||
|
| Six months to 30 Jun 17 (unaudited) | Six months to 30 Jun 16 (unaudited) | Year to 31 Dec 16 (audited) |
| ||
|
| £000's | £000's | £000's |
| ||
|
|
|
|
|
| ||
Loss before interest and taxation |
| (109) | (109) | (237) |
| ||
Operating cash flows before movements in working capital |
| (109) | (109) | (237) |
| ||
Decrease/(increase) in receivables |
| 5 | (12) | 25 |
| ||
Increase/(decrease) in payables |
| 1 | (1) | (273) |
| ||
Net cash used in operating activities |
| (103) | (122) | (485) |
| ||
|
|
|
|
|
| ||
Cash flow from financing activities |
|
|
|
|
| ||
Proceeds from issuance of ordinary shares net of costs |
| - | 392 | 660 |
| ||
Net cash from financing activities |
| - | - | 660 |
| ||
Net (decrease)/increase in cash and cash equivalents |
| (103) | 270 | 175 |
| ||
Cash and cash equivalents at the start of period |
| 269 | 94 | 94 |
| ||
Cash and cash equivalents at the end of the period |
| 166 | 364 | 269 |
| ||
1 Basis of preparation The Interim Report of the Company for the six months ended 30 June 2017 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 2016 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 2016, as described in those financial statements. In particular, the accounts have been prepared on a going concern basis, and as set out on page 16 of those financial statements.
|
| |||||||||||||||||||||
| 3 Loss per share | |||||||||||||||||||||
The calculation of the basic and diluted loss per share is based on the following data:
|
| |||||||||||||||||||||
Number of shares |
| Six months | Six months | Year to |
| |||||||||||||||||
|
| to 30 Jun 17 | to 30 Jun 16 | 31 Dec 16 |
| |||||||||||||||||
|
| 000's | 000's | 000's |
| |||||||||||||||||
Weighted average number of ordinary shares for the purposes of basic earnings per share |
| 156,324 | 152,464 | 153,677 |
| |||||||||||||||||
Effect of dilutive potential ordinary shares from share options |
| 129 | 149 | 122 |
| |||||||||||||||||
Weighted average number of ordinary shares for the purposes of diluted earnings per share |
| 156,453 | 152,613 | 153,799 |
| |||||||||||||||||
|
| |||||||||||||||||||||
Loss |
| Six months | Six months | Year to |
| |||||||||||||||||
|
| to 30 Jun 17 | to 30 Jun 16 | 31 Dec 16 |
| |||||||||||||||||
From operations |
| 000's | 000's | 000's |
| |||||||||||||||||
Loss for the purposes of basic earnings per share being net profit attributable to owners of the parent |
| (109) | (139) | (249) |
| |||||||||||||||||
Potential dilutive ordinary shares from share options |
| - | - | - |
| |||||||||||||||||
Loss for the purposes of diluted earnings per share |
| (109) | (139) | (249) |
| |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||
Loss per share from operations |
|
|
|
|
| |||||||||||||||||
Basic (p) |
| (0.1) | (0.1) | (0.2) |
| |||||||||||||||||
Diluted (p) a |
| (0.1) | (0.1) | (0.2) |
| |||||||||||||||||
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 2016 and June 2017. |
| |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||
Follow the stocks
