TIDMDRUM 
 
30 September 2020 
 
                                   Drumz plc 
        ('Drumz' or the 'Company', formerly Energiser Investments Plc) 
 
                        Interim Results to 30 June 2020 
 
CHAIRMAN'S STATEMENT 
 
I am pleased to present the interim results for Drumz for the six months ended 
30 June 2020. 
 
Board 
 
These results are the first that I have presented to Drumz shareholders and are 
for a period that predates my appointment to the Board, which was approved by 
shareholders at the Annual General Meeting of the Company held on 30 June 2020 
(the "AGM""). Also at the AGM Angus Forrest was appointed to the Board as Chief 
Executive Officer ("CEO") and John Wakefield as a non-executive director. I am 
delighted to report that Nishith Malde has agreed to remain on the Board as a 
non-executive director. Following the changes approved by shareholders at the 
AGM, Stephen Wicks and John Depasquale stepped down from the Board as agreed. I 
would like to take this opportunity to thank Stephen Wicks and John Depasquale 
for their service and their collective contributions. 
 
The Board now comprises Angus Forrest (CEO), who has over 25 years' experience 
in investing in technology companies and three non-executives, Nishith Malde 
and John Wakefield, who both have significant commercial and City experience 
and me (collectively the "New Board"). 
 
Results 
 
The Group's results showed no revenue (30 June 2019: GBPNil) and an operating 
loss of GBP36,000 (30 June 2019: loss GBP50,000). 
 
Historically, the principal asset of the Company was its investment in KCR REIT 
plc ("KCR"), an AIM quoted Real Estate Investment Trust ("REIT"), operating in 
the private rented residential investment market. KCR's principal activity is 
to acquire blocks of studio, one and two bedroom apartments that are rented to 
private tenants in the UK. 
 
This investment comprises 2,437,710 ordinary shares, representing 8.83% of the 
issued share capital of KCR. KCR's share price performance fell in the six 
months ended 30 June 2020 and as a result the Company suffered a loss on this 
investment in the period of GBP414,000 (30 June 2019: loss GBP122,000). As at 30 
June 2020 the investment had a carrying value of GBP767,000, equivalent to a KCR 
price per ordinary share of 31.5 pence per share. 
 
Principally due to the loss described above, the result for the period was a 
loss before and after taxation of GBP450,000 (30 June 2019: loss of GBP172,000). 
The loss per ordinary share amounted to GBP0.36p (30 June 2019: loss GBP0.14p). The 
Company will not be declaring a dividend. 
 
As at 30 June 2020, the net assets of the Company had decreased to GBP754,000 (30 
June 2019: GBP1,104,000) which equates to a net asset value per ordinary share of 
GBP0.61 pence (30 June 2019: GBP0.89p). 
 
On 18 September 2020, KCR released its audited results for the year ended 30 
June 2020 which included the following comments from their Chairman: 
 
"The Coronavirus has had a global negative impact on demand, supply chains, 
stock markets and consumer and business confidence. The economic impact is now 
being felt by companies and families. This has the potential to negatively 
impact the occupancy level and rentals that can be achieved in KCR's portfolio. 
However, at the accounts issue date, KCR has maintained a high occupancy and 
rental collection level of more than 95% and rents overall have continued to 
increase. 
 
There is greater supply of studio, one and two bed flats in the letting market 
which has increased letting times from less than one week to up to three weeks 
in our London portfolio. However, there continues to be strong tenant demand in 
all the Company's locations. UK residential rented property remains 
fundamentally under-supplied and KCR continues to target studio, one and two 
bed units, that are in high demand and relatively short supply." 
 
New Investing Policy 
 
Previously, the Company had principally invested in real estate, but the then 
Board had concluded that, following the COVID-19 worldwide pandemic,  the short 
term prospects for real estate in the UK might be adversely affected. With the 
change in the Board, at the Company's AGM, shareholders approved a new 
investing policy. 
 
The Company's new investing policy will be to invest principally, but not 
exclusively, in the technology sector within Europe ("New Investing Policy"). 
Although the Company intends the main focus of the New Investing Policy to be 
on technology businesses, this will not preclude the Company from considering 
investment in suitable projects in other sectors or geographies where the New 
Board believes that there are high-growth opportunities. 
 
In accordance with the New Investing Policy, the New Board will pursue a 
strategy under which the Company will invest in and acquire technology 
businesses, improve them by a combination of new management and investment and 
then realise or retain the value created. The Company may be either an active 
investor and acquire a controlling interest in companies or it may acquire 
non-controlling shareholdings. 
 
Whilst it is not possible to be entirely prescriptive, the Company will be 
actively seeking investment opportunities which can be improved through the 
introduction of management skills and expertise from the Board and/or further 
investment capital. The Board considers that the broad collective experience of 
the Directors together with their extensive network of contacts will assist 
them in the identification, evaluation and funding of suitable investment 
opportunities. 
 
The opportunities are likely to have some or all of the following 
characteristics, namely: 
 
  * a majority of their revenue derived from technology or the use of 
    technology, which the New Board believes is strongly positioned to benefit 
    from market growth; 
  * a trading history which reflects past profitability and potential for 
    significant capital growth; and 
  * where all or part of the consideration might be satisfied by the issue of 
    new ordinary shares or other securities in the Company. 
 
The Company's financial resources may be invested in a small number of projects 
or investments or potentially in just one investment. These investments may be 
in either quoted or unquoted companies. The Company's investments may take the 
form of equity, debt or convertible instruments. Investments may be made in all 
types of assets falling within the remit of the New Investing Policy and there 
will be no investment restrictions. The New Board may consider it appropriate 
to take an equity interest in any proposed investment, which may range from a 
minority position to 100 per cent ownership. The Company may be either an 
active or passive investor. 
 
The objective of the New Board is to generate investment returns principally 
through capital appreciation. Any income generated by the Company will first be 
applied to cover the Company's overheads and then any surplus will be added to 
the funds available to further implement the New Investment Policy. In view of 
this and the considerable deficit on the Company's profit and loss account, it 
is extremely unlikely that the New Board will be in a position to recommend any 
dividends in the early years of its existence without effecting a capital 
reconstruction, which would need to be approved by the courts. However, the New 
Board may recommend or declare dividends at some future date, depending on the 
financial position of the Company at that time. Given the nature of the 
Company's New Investing Policy, the Company does not intend to make regular 
periodic disclosures or calculations of net asset value. 
 
Placing 
 
In order to facilitate the Company's New Investing Policy, the Company 
undertook a placing of 130,000,000 new ordinary shares at a price of 0.5p per 
ordinary share, which raised approximately GBP650,000 (before the expenses of the 
issue) (the "Placing"). The Placing was approved by shareholders on 30 June 
2020 and the new ordinary shares commenced trading on 1 July 2020. 
 
First Technology Investment 
 
Having changed the Company's investment policy and completed the Placing, the 
Company was able in September 2020 to make its first new investment, being the 
acquisition of a minority stake in Acuity Risk Management Ltd, ("Acuity"), 
which operates an award winning software business specialising in risk 
management. Acuity's business is the supply of its proprietary software, STREAM 
T, and services for cyber security and risk management, used by organisations 
globally for customers ISO 27001, GDPR, NIST Cyber Security Framework and other 
programs. 
 
The Company has invested GBP500,000 in cash for an initial 20 per cent. 
shareholding in Acuity, with an option to acquire an additional 5 per cent. for 
a further GBP125,000. 
 
The Acuity business was founded in 2005 by a team who had previously built a 
consultancy business specialising in cyber security which was later acquired by 
Siemens. The founders encapsulated their knowledge in developing the STREAMT 
software which was launched in 2007. This software enables a risk-based 
approach to cyber security, reducing the risk of security breaches, optimising 
cyber security activities and, in the event of a breach, mitigating damage 
through a strategic risk-based approach. 
 
Acuity's customers include government organisations, large and medium sized 
private enterprises in the UK, Europe, Africa and North America. Gartner 
reports the global market for Integrated Risk Management ('IRM') in 2020 to be 
$7.3 billion with projected growth to $9.3 billion by 2023. This is being 
driven by the development of new digital products and services designed to 
propel a company's future growth. In turn this introduces new risks that 
require IRM technology. 
 
Acuity regularly wins awards including in Information Age and TechWorld's top 
cyber security companies in the UK supplying cybersecurity services to 
organisations globally. STREAMT has been awarded a five star rating in the SC 
Media GRC, Risk and Policy Management Review for five consecutive years. In 
2018, STREAMT was Continuity, Insurance and Risk magazine's cyber security 
product of the year. 
 
The last published accounts for the Acuity business were issued by Acuity RM 
LLP for the 12 months to 31 March 2019 and show that the business generated a 
profit before tax of GBP226,000 on revenues of GBP858,000. The net assets of Acuity 
RM LLP as at 31 March 2019 were GBP11,000. Acuity RM LLP transferred its business 
to Acuity earlier in 2020. 
 
Outlook 
 
This has been a productive period for your New Board, with the introduction of 
the New Investment Policy, finalisation of the Placing and completion of the 
Company's first technology Investment. I look forward to being able to report 
on further progress made by Drumz, as and when appropriate. 
 
Simon Bennett 
Chairman 
29 September 2020 
 
 
Group statement of comprehensive income 
 
                                                               Unaudited  Unaudited   Audited 
                                                                6 months   6 months   year to 
                                                                   to 30 to 30 June        31 
                                                               June 2020       2019  December 
                                                                                         2019 
 
                                                         Note      GBP'000      GBP'000     GBP'000 
 
Continuing operations 
 
Revenue arising in the course of ordinary activities                   -          -         2 
 
Cost of sales                                                          -          -         - 
 
Gross profit                                                           -          -         2 
 
Reversal of accrued remuneration for former director                   -          -       117 
 
Administrative expenses                                             (36)       (50)      (76) 
 
Operating (loss) / profit                                  5        (36)       (50)        43 
 
Loss on investments                                                (414)      (122)     (134) 
 
Recovery of bad debt written off in previous periods                   -          -        19 
 
Loss before and after taxation                             5       (450)      (172)      (72) 
 
Loss for the period attributable to shareholders of the            (450)      (172)      (72) 
Company 
 
Total comprehensive loss                                           (450)      (172)      (72) 
 
Loss per share 
 
Basic and diluted loss per share from total and            4     (0.36)p    (0.14)p   (0.06)p 
continuing operations 
 
 
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 
 
                                                              Unaudited Unaudited  Audited as 
                                                               as at 30  as at 30       at 31 
                                                              June 2020 June 2019    December 
                                                                                         2019 
 
                                                        Note      GBP'000     GBP'000       GBP'000 
 
ASSETS 
 
Non-current assets 
 
Investments                                               6         767     1,193       1,181 
 
                                                                    767     1,193       1,181 
 
Current assets 
 
Trade and other receivables                                           9        15           5 
 
Cash and cash equivalents                                            25       163          96 
 
                                                                     34       178         101 
 
Total assets                                                        801     1,371       1,282 
 
LIABILITIES 
 
Current liabilities 
 
Trade and other payables                                             47       267          78 
 
Total liabilities                                                    47       267          78 
 
Net assets                                                          754     1,104       1,204 
 
EQUITY 
 
Share capital                                                     2,392     2,392       2,392 
 
Share premium account                                             7,189     7,189       7,189 
 
Convertible loan                                                     88        88          88 
 
Merger reserve                                                    1,012     1,012       1,012 
 
Retained earnings                                               (9,927)   (9,577)     (9,477) 
 
Total equity                                                        754     1,104       1,204 
 
 
Group statement of changes in equity 
 
                                      Share 
 
                            Share   premium  Convertible  Merger  Retained     Total 
 
                          capital   account         loan reserve  earnings    equity 
 
                            GBP'000     GBP'000        GBP'000   GBP'000     GBP'000     GBP'000 
 
Balance at 1 January 2019   2,392     7,189           88   1,012   (9,405)     1,276 
 
Total comprehensive             -         -            -       -     (172)     (172) 
profit 
 
Balance at 30 June 2019     2,392     7,189           88   1,012   (9,577)     1,104 
 
Total comprehensive             -         -            -       -       100       100 
profit 
 
Balance at 31 December      2,392     7,189           88   1,012   (9,477)     1,204 
2019 
 
Total comprehensive loss        -         -            -       -     (450)     (450) 
 
Balance at 30 June 2020     2,392     7,189           88   1,012   (9,927)       754 
 
 
Group statement of cash flows 
 
                                                                Unaudited Unaudited   Audited 
                                                                 6 months  6 months   year to 
                                                               to 30 June     to 30        31 
                                                                     2020 June 2019  December 
                                                                                         2019 
 
                                                                    GBP'000     GBP'000     GBP'000 
 
Cash flows from operating activities 
 
(Loss)/profit before taxation                                       (450)     (172)      (72) 
 
Adjustments for: 
 
Fair value adjustment for listed investments                          414       122       134 
 
Changes in working capital: 
 
- (Increase)/decrease in trade and other receivables                  (4)       (7)         3 
 
- (Decrease)/increase in trade and other payables                    (31)        43     (146) 
 
Net cash used in operating activities                                (71)      (14)      (81) 
 
Net decrease in cash and cash equivalents                            (71)      (14)      (81) 
 
Cash and cash equivalents at beginning of period                       96       177       177 
 
Cash and cash equivalents at end of period                             25       163        96 
 
 
Notes 
 
1. Nature of operations and general information 
 
The principal activity of the Group is as an investing company investing in 
quoted and unquoted companies to achieve capital growth. 
 
Drumz plc is the Group's ultimate parent company. It is incorporated and 
domiciled in Great Britain. The address of Drumz plc's registered office is 
Burnham Yard, London End, Beaconsfield, Buckinghamshire, HP9 2JH. 
 
Drumz 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 29 September 2020. 
 
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 2019 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 
 
This consolidated half-yearly financial report has been prepared in accordance 
with International Accounting Standard 34 - Interim Financial Reporting. 
 
On 11 March 2020, the World Health Organisation declared the coronavirus 
(COVID-19) a global pandemic. There are no comparable recent events which may 
provide guidance as to the effect of the spread of COVID-19 and a potential 
pandemic, and, as a result, the ultimate impact of the COVID-19 outbreak or a 
similar health epidemic is uncertain. As such, there is still significant 
uncertainty as to what foreseen or unforeseen action or actions the Group may 
be required to take in order to respond to any circumstances that may arise in 
the future. 
 
The Directors have considered the possible impact of COVID-19 on Drumz and its 
business activities, which are now increasingly focussed on software 
businesses. They believe that 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. 
 
The net proceeds of the placing were used to make the Group's first technology 
investment of GBP500,000 (further details of which are set out in Note 7 Post 
Balance Sheet Events) and to provide additional working capital. In addition 
the Group has an existing investment in KCR REIT plc, further details of which 
are included in the Chairman's statement, which could be realised. As a result, 
the Directors consider it appropriate to prepare the interim report on the 
going concern basis. 
 
The consolidated half-yearly financial report should be read in conjunction 
with the annual financial statements for the year ended 31 December 2019, 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 2019. 
 
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 123,912,957 ordinary shares of 0.1p (2018: 
123,912,957 ordinary shares of 0.1p) and the following figures: 
 
                                                                Unaudited Unaudited   Audited 
                                                                 6 months  6 months   year to 
                                                                    to 30     to 30        31 
                                                                June 2020 June 2019  December 
                                                                                         2019 
 
Loss attributable to equity shareholders GBP'000                      (450)     (172)      (72) 
 
Loss per ordinary share                                           (0.36)p   (0.14)p   (0.06)p 
 
Diluted loss 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 
 
                                                         Unaudited   Unaudited  Audited year 
                                                       6 months to 6 months to         to 31 
                                                           30 June     30 June December 2019 
                                                              2020        2019 
 
                                                             GBP'000       GBP'000         GBP'000 
 
Segment result 
 
Investment activities: 
 
Reversal of accrued remuneration for former director             -           -           117 
 
Administrative expenses                                       (36)        (50)          (76) 
 
                                                              (36)        (50)            41 
 
Rental activities: 
 
Rental income                                                    -           -             2 
 
                                                                 -           -             2 
 
Operating loss                                                (36)        (50)            43 
 
Finance income 
 
Other gains and losses                                       (414)       (122)         (115) 
 
Loss before tax                                              (450)       (172)          (72) 
 
 
 
                                                         Unaudited   Unaudited      Audited 
                                                          as at 30    as at 30     as at 31 
                                                         June 2020   June 2019     December 
                                                                                       2019 
 
                                                             GBP'000       GBP'000        GBP'000 
 
Segment assets 
 
Investment activities: 
 
Non-current assets                                             767       1,193        1,181 
 
Current assets - other                                          34         178          101 
 
                                                               801       1,371        1,282 
 
Total assets                                                   801       1,371        1,282 
 
Segment liabilities 
 
Investment activities: 
 
Current liabilities                                             47         267           78 
 
                                                                47         267           78 
 
Total liabilities                                               47         267           78 
 
Total assets less total liabilities                            754       1,104        1,204 
 
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. Investments 
 
During the year ended 31 December 2018 the Group acquired 2,435,710 shares in 
KCR Residential Reit PLC, an AIM listed real estate investment trust who 
specialise in the acquisition and management of rented residential portfolios 
in the UK. 
 
Investments 
 
                                                                                        GBP'000 
 
Cost 
 
At 1 January 2019, 30 June 2019 and 31 December 2019                                    1,705 
 
At 30 June 2020                                                                         1,705 
 
Fair value losses 
 
At 1 January 2019                                                                       (390) 
 
Change in fair value recognised in profit and loss                                      (122) 
 
At 30 June 2019                                                                         (512) 
 
Change in fair value recognised in profit and loss                                       (12) 
 
At 31 December 2019                                                                     (524) 
 
Change in fair value recognised in profit and loss                                      (414) 
 
At 30 June 2020                                                                         (938) 
 
Fair Value 
 
At 30 June 2020                                                                           767 
 
At 31 December 2019                                                                     1,181 
 
At 30 June 2019                                                                         1,193 
 
7. Post balance sheet events 
 
On 1 July 2020, the Company placed 130,000,000 new ordinary shares of 0.1 pence 
each at a price of 0.5p each. Following the placing, the Company had a total of 
253,912,957 ordinary shares in issue. 
 
On 4 September 2020 the Group made its first technology investment in Acuity 
Risk Management Limited ("Acuity"), which operates an award winning software 
business specialising in risk management. Drumz invested GBP500,000 in cash for 
an initial 20% shareholding in Acuity with an option to acquire an additional 
5% for a further GBP125,000. Further details can be found in the Chairman's 
Statement. 
 
 
 
END 
 

(END) Dow Jones Newswires

September 30, 2020 02:00 ET (06:00 GMT)

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