TIDMDRUM 
 
28 September 2021 
 
                                  Drumz plc 
 
                          ('Drumz' or the 'Company') 
 
                        Interim Results to 30 June 2021 
 
CHAIRMAN'S STATEMENT 
 
I am pleased to present the Company's Interim Results for Drumz, which is 
focused on investment in the technology sector, for the six months ended 30 
June 2021. 
 
Results and performance 
The Group's results for the six months ended 30 June 2021 showed revenue of £ 
18,000 (2020: £Nil) and an operating loss of £115,000 (2020: loss of £36,000). 
 
At 30 June 2021 the two principal assets of the Group were its holding in 
Acuity Risk Management Limited ("Acuity"), an award winning business 
specialising in risk management and cybersecurity and its legacy holding in KCR 
Residential REIT plc ("KCR"), a company listed on AIM, which owns rented 
property in the private rented residential sector, typically in blocks of 
studio, one and two bedroomed apartments which are rented to private tenants in 
the UK. 
 
Acuity continues to perform well and in September 2021, Drumz exercised its 
option to acquire a further 5% of Acuity for a cash consideration of £125,000. 
As a result, Drumz now owns 25% of Acuity's share capital. Acuity's principal 
product is STREAMT, which is used by private and public sector clients to 
manage their cyber security and other enterprise risks. Acuity is in a sector 
where customer demand is exceptionally strong, as more businesses seek to 
protect their data for financial, reputational and regulatory reasons. Demand 
for Acuity's proprietary software continues to grow and further details of the 
progress achieved by the company are set out in the Chief Executive's Report. 
 
The share price performance of KCR in the six months ended 30 June 2021 
continued to be disappointing. The value of Drumz's holding in KCR at 30 June 
2021 was £427,000 (31 December 2020: £767,000) representing a further book loss 
on investments of £146,000 (2020: loss of £414,000).  I am pleased to report 
that in recent weeks the KCR share price has improved and at the date of this 
announcement, the book loss suffered in the first half had been eliminated. 
 
Principally as a result of the KCR book loss, the Group's loss before and after 
taxation amounted to £261,000 (2020: £450,000). The basic and diluted loss per 
share amounted to £0.08p (2020: loss £0.36p). No dividend has been declared. 
 
At 30 June 2021 the Group had cash resources of £380,000 (2020: £25,000) and 
shareholders' funds of £1,276,000 (2020: £754,000). 
 
Macroeconomic factors 
 
The effects of the global COVID-19 pandemic continue to be felt on the world's 
economy and it remains extremely difficult to quantify what effect the broader 
impact of this pandemic will have on business in the future. 
 
Outlook 
We continue to be extremely pleased with the progress at Acuity. The commercial 
infrastructure of Acuity has been overhauled and a number of significant new 
staff hires have been made. The improvement in the number and the quality of 
the sales leads Acuity is now generating is testament to the progress that has 
been made and bodes well for the future. We continue to look for new investment 
opportunities and I would like to take this opportunity to thank my colleagues 
for their continued support. 
 
Simon Bennett 
Chairman 
 
27 September 2021 
 
 
 
 
Chief Executive's Report 
 
Existing portfolio 
 
Acuity Risk Management 
The focus has been on working with the Acuity management team to put in solid 
foundations, which will enable Acuity to grow as quickly as possible in its 
market, risk management for cybersecurity. The main drivers of value of such 
companies which operate a Software as a Service (SaaS) business model, are 
scale and revenue growth rates. It takes time and effort to get this right and 
a lot of credit for the progress that has been made must go to the team at 
Acuity. 
 
In the period, Acuity completed its financial year end and the progress made in 
commercialising its activities has begun to show through, with a 27% rise in 
SaaS revenues to £1.2m, a 97% rise in contracted future revenues to £2.2m. 
Recently, Acuity was identified by a Gartner survey, Hype Cycle for Cyber and 
IT Risk Management, 2021. I am also delighted to be able to report that the 
highly influential global research, Gartner's peer insightsT,  https:// 
www.gartner.com/reviews/market/it-risk-management-solutions/vendor/ 
acuity-risk-management/product/stream-cyber-risk-platform recognises Acuity's 
principal product STREAMT as being in the top three products in IT risk 
management. 
 
KCR 
As referred to in the Chairman's statement, the share price of our legacy 
investment in KCR has continued to be disappointing. However, it is an asset 
backed company, and KCR's share price has been trading at a significant 
discount to its stated net asset value per share. I also note that there has 
been a significant improvement in the share price in recent weeks, as KCR moves 
towards positive monthly cashflows. 
 
New investment activity 
In order to achieve good rates of return for shareholders, the focus is on 
investing in and acquiring established software businesses with an enterprise 
product sold into the business-to-business market, where Drumz can use its 
expertise to transform the value. We continue to look actively for investment 
opportunities. 
 
Outlook 
We continue to be pleased with the progress being made at Acuity, where Drumz's 
strategy for delivering value enhancement is starting to bear fruit.  Our 
search for new investment opportunities continues and I look forward to being 
able to report on the progress made in the coming months. 
 
Angus Forrest 
Chief Executive 
 
For further information please 
contact: 
 
Drumz Plc                              www.drumzplc.com 
 
Angus Forrest                          +44 (0) 20 3582 0566 
 
WH Ireland (NOMAD & Broker)            www.whirelandcb.com 
 
Mike Coe / Sarah Mather                020 7220 1666 
 
Peterhouse Capital Limited (Joint 
broker) 
 
Lucy Williams / Duncan Vasey           020 7469 0936 
 
 
 
 
Condensed consolidated statement of comprehensive income 
 
                                                               Unaudited Unaudited  Audited 
                                                                6 months  6 months  year to 
                                                                   to 30     to 30       31 
                                                               June 2021 June 2020 December 
                                                                                       2020 
 
                                                          Note     £'000     £'000    £'000 
 
Continuing operations 
 
Revenue                                                               18         -       12 
 
Cost of sales                                                          -         -        - 
 
Gross profit                                                          18         -       12 
 
Administrative expenses                                            (133)      (36)    (161) 
 
Operating loss                                             5       (115)      (36)    (149) 
 
Loss on investments                                                (146)     (414)    (608) 
 
Loss before and after taxation                             5       (261)     (450)    (757) 
 
Loss for the period attributable to shareholders of the            (261)     (450)    (757) 
company 
 
Total comprehensive income attributable to shareholders            (261)     (450)    (757) 
of the company 
 
Earnings per share 
 
Basic and diluted earnings per share from total and        4     (0.08)p   (0.36)p  (0.36)p 
continuing operations 
 
 
Diluted earnings per share is taken as equal to basic earnings per share as the 
Company is loss making and the average share price during the period is lower 
than the exercise price and therefore the effect of including share options is 
anti-dilutive. 
 
 
 
 
Condensed consolidated statement of financial position 
 
                                                              Unaudited Unaudited Audited as 
                                                               as at 30  as at 30      at 31 
                                                              June 2021 June 2020   December 
                                                                                        2020 
 
                                                         Note     £'000     £'000      £'000 
 
ASSETS 
 
Non-current assets 
 
Investments at fair value through profit or loss          6         927       767      1,073 
 
                                                                    927       767      1,073 
 
Current assets 
 
Trade and other receivables                                          20         9         14 
 
Cash and cash equivalents                                           380        25        491 
 
                                                                    400        34        505 
 
Total assets                                                      1,327       801      1,578 
 
LIABILITIES 
 
Current liabilities 
 
Trade and other payables                                             51        47         60 
 
Total liabilities                                                    51        47         60 
 
Net assets                                                        1,276       754      1,518 
 
EQUITY 
 
Share capital                                                     2,613     2,392      2,613 
 
Share premium account                                             8,039     7,189      8,039 
 
Share option reserve                                                 19         -          - 
 
Convertible loan                                                     88        88         88 
 
Merger reserve                                                    1,012     1,012      1,012 
 
Retained earnings                                              (10,495)   (9,927)   (10,234) 
 
Total equity attributable to shareholders of the company          1,276       754      1,518 
 
 
 
 
Condensed consolidated statement of changes in equity 
 
                                         Share    Share 
 
                              Share    premium   option Convertible  Merger  Retained  Total 
 
                             capital   account  Reserve        loan reserve  earnings equity 
 
                               £'000     £'000    £'000       £'000   £'000     £'000  £'000 
 
Balance at 1 January 2020      2,392     7,189       __          88   1,012   (9,477)  1,204 
 
Total comprehensive profit         -         -       __           -       -     (450)  (450) 
 
Balance at 30 June 2020        2,392     7,189       __          88   1,012   (9,927)    754 
 
Total comprehensive loss           -         -       __           -       -     (307)  (307) 
Issue of shares net of costs     221       850                                         1,071 
 
Balance at 31 December 2020    2,613     8,039       __          88   1,012  (10,234)  1,518 
 
Total comprehensive loss           -         -                    -       -     (261)  (261) 
 
Share option reserve              __        __       19          __      __        __     19 
 
Balance at 30 June 2021        2,613     8,039       19          88   1,012  (10,495)  1,276 
 
 
 
 
Condensed consolidated statement of cash flows 
 
                                                                  Unaudited 6 Unaudited  Audited 
                                                                 months to 30  6 months  year to 
                                                                    June 2021     to 30       31 
                                                                              June 2020 December 
                                                                                            2020 
 
                                                                        £'000     £'000    £'000 
 
Cash flows from operating activities 
 
(Loss)/profit before taxation                                           (261)     (450)    (757) 
 
Adjustments for: 
 
Fair value adjustment for listed investments                              146       414      608 
 
Share option reserve 
                                                                19 
 
Changes in working capital: 
 
- (Increase)/decrease in trade and other receivables                      (6)       (4)      (2) 
 
- (Decrease)/increase in trade and other payables                         (9)      (31)     (25) 
 
Net cash used in operating activities                                   (111)      (71)    (176) 
 
Cash flows from investing activities 
Purchase of investments                                                                    (500) 
Cash flows from financing activities 
Cash raised through issue of shares (net of transaction costs)                             1,071 
 
Net increase (decrease) in cash and cash equivalents                    (111)      (71)      395 
 
Cash and cash equivalents at beginning of period                          491        96       96 
 
Cash and cash equivalents at end of period                                380        25      491 
 
 
 
 
1. Nature of operations and general information 
 
The principal activity of the Company is investing in technology companies, 
which offer value creation opportunities over the short and medium term. 
 
The Company is incorporated and domiciled in the United Kingdom. The address of 
Drumz plc's registered office is Burnham Yard, London End, Beaconsfield, 
Buckinghamshire, HP9 2JH. 
 
Drumz plc's shares are listed on AIM, a market operated by the London Stock 
Exchange. The condensed consolidated interim financial report was approved for 
issue by the Board of Directors on 27 September 2021. 
 
The financial information set out in this interim financial report does not 
constitute statutory accounts as defined in Sections 434(3) and 435(3) of the 
Companies Act 2006. The Company's statutory financial statements for the year 
ended 31 December 2020 have been filed with the Registrar of Companies and are 
available at www.drumzplc.com. 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 
 
The condensed consolidated interim financial report has been prepared in 
accordance with the requirements of the AIM Rules for Companies. As permitted, 
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in 
preparing this interim financial information. The condensed consolidated 
interim financial statements should be read in conjunction with the annual 
financial statements for the year ended 31 December 2020. The interim financial 
statements have been prepared in accordance with International Financial 
Reporting Standards (IFRSs) as adopted by the United Kingdom which have not 
differed from the previously EU-endorsed IFRS, and hence the previously 
reported accounting policies still apply. 
 
The Directors believe that whilst the impact of COVID-19 appears to be reducing 
there is still significant uncertainty as to what foreseen or unforeseen action 
or actions the Company may be required to take in order to respond to any 
circumstances that may arise in the future. They have considered the possible 
impact of COVID-19 on Drumz and its business activities, which are now 
increasingly focussed on software businesses, many businesses in the software 
sector can be operated remotely in a virtual environment which should reduce 
the impact of COVID-19 on their activities. 
 
Going concern 
 
The Directors, having made appropriate enquiries, consider that adequate 
resources exist for the Company and Group to continue in operational existence 
for the foreseeable future and that, therefore, it is appropriate to adopt the 
going concern basis in preparing the condensed consolidated interim financial 
statements for the period ended 30 June 2021. 
 
Risks and uncertainties 
 
The Board continuously assesses and monitors the key risks of the business. The 
key risks that could affect the Group's medium term performance and the factors 
that mitigate those risks have not substantially changed from those set out in 
the Company's 2020 Annual Report and Financial Statements, a copy of which is 
available on the Company's website: www.drumzplc.com. 
 
Critical accounting estimates 
 
The preparation of condensed consolidated interim financial report requires 
management to make estimates and assumptions that affect the reported amounts 
of assets and liabilities at the end of the reporting period. Significant items 
subject to such estimates are set out in the Company's 2020 Annual Report and 
Financial Statements. The nature and amounts of such estimates have not changed 
significantly during the interim period. 
 
3. Accounting policies 
 
Except as described below, the same accounting policies, presentation and 
methods of computation have been followed in these condensed consolidated 
interim financial statements as were applied in the preparation of the Group's 
annual financial statements for the year ended 31 December 2020. 
 
3.1 Changes in accounting policy and disclosures 
 
(a) Accounting developments during 2021 
 
The International Accounting Standards Board (IASB) issued various amendments 
and revisions to International Financial Reporting Standards and IFRIC 
interpretations. The amendments and revisions were applicable for the period 
ended 30 June 2021 but did not result in any material changes to the financial 
statements of the Group or Company. 
 
(b)  New standards, amendments and interpretations in issue but not yet 
effective or not yet endorsed and not early adopted 
 
Standard              Impact on initial application       Effective date 
 
IFRS 3                Reference to Conceptual Framework   1 January 2022 
 
IAS 37                Onerous contracts                   1 January 2022 
 
IAS 16                Proceeds before intended use        1 January 2022 
 
Annual improvements   2018-2020 Cycle                     1 January 2022 
 
IAS 8                 Accounting estimates                1 January 2023 
 
IAS 1                 Classification of Liabilities as    1 January 2023 
                      Current or Non-Current. 
 
The Group is evaluating the impact of the new and amended standards above which 
are not expected to have a material impact on the Group's results or 
shareholders' funds. 
 
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 344,822,048 ordinary shares of 0.1p (2020: 
210,083,568 ordinary shares of 0.1p) and the following figures: 
 
                                                                 Unaudited Unaudited Audited 
                                                                 6 months  6 months  year to 
                                                                 to 30     to 30     31 
                                                                 June 2021 June 2020 December 
                                                                                     2020 
 
Loss attributable to equity shareholders £'000                   (261)     (450)     (757) 
 
Loss per ordinary share                                          (0.08)p   (0.36)p   (0.36)p 
 
Diluted loss per share is taken as equal to basic earnings per share as the 
Company'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 
 
There is one operating segment. 
 
The activity of both the investments is based mainly in the United Kingdom. 
 
6. Investments 
 
The Company made investments as follows during the years ended 31 December: 
 
2018 It acquired 2,435,710 shares in KCR Residential REIT PLC, an AIM listed 
real estate investment trust specialising in the acquisition and management of 
rented residential portfolios in the UK. 
 
2020 It invested £500,000 for a 20% holding in Acuity Risk Management Limited. 
 
Subsequent to the period end, Drumz exercised its option and invested a further 
£125,000 in Acuity Risk Management Limited, increasing the holding to 25% (see 
Note 7 below). 
 
Investments 
 
                                                                                   £'000 
 
Cost 
 
At 1 January 2021                                                                  2,205 
 
At 30 June 2021                                                                    2,205 
 
Fair value losses 
 
At 1 January 2021                                                                  (1,132) 
 
Change in fair value recognised in profit and loss                                 (146) 
 
At 30 June 2021                                                                    (1,278) 
 
Fair Value 
 
At 30 June 2021                                                                       927 
 
At 31 December 2020                                                                1,073 
 
Fair value hierarchy 
 
In accordance with IFRS 7, financial instruments are measured by level of the 
following fair value measurement hierarchy: 
 
Level 1: quoted prices in an active market for identical assets or liabilities. 
The fair value of financial instruments traded in active markets is based on 
quoted market prices at the balance sheet date. A market is regarded as active 
if quoted prices are readily and regularly available and those prices represent 
actual and regularly occurring market transactions on an arm's-length basis. 
The quoted market price used for financial assets held by the Group is the 
closing price on the last day of the financial year of the Group. These 
instruments are included in level 1 and comprise FTSE and AIM-listed 
investments classified as held at fair value through profit or loss. 
 
Level 2: the fair value of financial instruments that are not traded in an 
active market is determined by using valuation techniques. These valuation 
techniques maximise the use of observable market data where it is available and 
rely as little as possible on entity-specific estimates. If all significant 
inputs required to fair value an instrument are observable, the instrument is 
included in level 2. 
 
Level 3: the fair value of financial instruments that are not traded in an 
active market (for example, investments in unquoted companies) is determined by 
using valuation techniques such as earnings multiples. If one or more of the 
significant inputs is not based on observable market data, the instrument is 
included in level 3. 
 
There have been no transfers between these classifications in the period (2020: 
none). The change in fair value for the current and previous years is 
recognised through profit or loss. 
 
All assets held at fair value through profit or loss were designated as such 
upon initial recognition. 
 
7. Post balance sheet events 
 
Subsequent to the period end, Drumz exercised its option and invested a further 
£125,000 in Acuity Risk Management Limited, taking its holding to 25%. 
 
 
 
END 
 
 

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