Tanfield Regulatory News (TAN)

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDING 30 JUNE 2014

Six months to

30 Jun 14 (unaudited)

Six months to 30 Jun 13 (unaudited)

Year to

 31 Dec 13

 (audited)

£000's

£000's

£000's

Revenue

-

1,270

2,223

Staff costs

(56)

(909)

(2,606)

Depreciation and amortisation expense

-

-

Other operating income

9

-

-

Other operating expenses

(82)

(443)

(679)

Loss from operations before impairments

(129)

(82)

(1,062)

Impairment of Investments

-

-

(1,357)

Intercompany loan forgiveness

-

-

(17,141)

Adjustment to fair value of investments

-

-

26,984

Profit/(loss) from operations after impairments

(129)

(82)

7,424

Finance expense

(139)

-

(80)

Finance income

7

22

48

Net finance (expense) income

(132)

22

(32)

Profit/(loss) from operations before tax

(261)

(60)

7,392

Taxation

-

-

-

Profit/(loss) & total comprehensive income for the year attributable to equity shareholders

(261)

(60)

7,392

Earnings/(loss) per share

Earnings/(loss) per share from operations

Basic (p)

(0.18)

(0.04)

5.40

Diluted (p)

(0.18)

(0.04)

5.29

BALANCE SHEET

AS AT 30 JUNE 2014

30 Jun 14

(unaudited)

30 Jun 13

(unaudited)

31 Dec 13

(audited)

£000's

£000's

£000's

Non current assets

Non current Investments

37,563

-

37,563

Investments in subsidiaries

-

11,965

-

37,563

11,965

37,563

Current assets

Trade and other receivables

2,574

19,719

2,902

Deferred consideration

341

339

349

Cash and cash equivalents

257

380

375

3,172

20,438

3,626

Total assets

40,735

32,403

41,189

Current liabilities

Trade and other payables

1,581

624

1,885

1,581

624

1,885

Non-current liabilities

Deferred tax liabilities

-

-

-

-

-

-

Total liabilities

1,581

624

1,885

Equity

Share capital

7,086

6,975

6,975

Share premium

16,262

16,262

16,262

Share option reserve

862

1,966

1,904

Special reserve

66,837

66,837

66,837

Merger reserve

1,534

1,534

1,534

Retained earnings

(53,427)

(61,796)

(54,208)

Total equity

39,153

31,778

39,304

Total equity and total liabilities

40,735

32,402

41,189

STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDING 30 JUNE 2014

Six months to 30 Jun 14 (unaudited)

Six months to 30 Jun 13 (unaudited)

Year to

 31 Dec 13

 (audited)

£000's

£000's

£000's

Profit/(loss) before interest and taxation

(129)

(82)

7,424

Loss on current asset currency fluctuations

(95)

-

27

Adjustment to fair value of investment

-

-

(26,650)

Loss on intercompany loan write off

-

-

17,141

Loss on impairment of investments

-

-

1,357

Operating cash flows before movements in working capital

(224)

(82)

(701)

(Increase)/decrease in receivables

337

(2,132)

(1,513)

Increase/(decrease) in payables

(305)

207

270

Net cash (used in) operations

(192)

(2,007)

(1,944)

Interest paid

(44)

-

(80)

Net cash used in operating activities

(236)

(2,007)

(2,024)

Cash flow from Investing Activities

Purchase of investments

-

-

-

Loan to Smith Electric Vehicles US Corp

-

-

-

Interest received

7

22

34

Net cash from/(used in) investing activities

7

22

34

Cash flow from financing activities

Proceeds from issuance of ordinary shares net of costs

111

1,963

1,963

Net cash from financing activities

111

1,963

1,963

Net decrease in cash and cash equivalents

(118)

(22)

(27)

Cash and cash equivalents at the start of year

375

402

402

Cash and cash equivalents at the end of the year

257

380

375

1 Basis of preparation

The Interim Report of the Company for the six months ended 30 June 2014 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 2013 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 2013, as described in those financial statements. In particular, the accounts have been prepared on a going concern basis, and as set out on page 17 of those financial statements.

3 Earnings/(loss) per share

The calculation of the basic and diluted (loss)/earnings per share is based on the following data:

Number of shares

Six months

Six months

Year to

to 30 Jun 14

to 30 Jun 13

31 Dec 13

000's

000's

000's

Weighted average number of ordinary shares for the purposes of basic earnings per share

141,427

134,223

136,879

Effect of dilutive potential ordinary shares from share options

720

2,891

2,883

Weighted average number of ordinary shares for the purposes of diluted earnings per share

142,147

137,114

139,762

Earnings

Six months

Six months

Year to

to 30 Jun 14

to 30 Jun 13

31 Dec 13

From operations

£000's

£000's

£000's

Earnings/(loss) for the purposes of basic earnings per share being net profit attributable to owners of the parent

(261)

(60)

7,392

Potential dilutive ordinary shares from share options

-

-

-

Earnings/(loss) for the purposes of diluted earnings per share

(261)

(60)

7,392

Earnings/(loss) per share from operations

Basic (p)

(0.18)

(0.04)

5.40

Diluted (p)a

(0.18)

(0.04)

5.29

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 2012.