TIDMRIIG
RNS Number : 1592P
Resources In Insurance Group PLC
30 September 2013
30th September 2013
RESOURCES IN INSURANCE GROUP PLC
FINAL RESULTS
The Board of Resources in Insurance Group plc ("RiIG" or "the
Group"), a leading provider of claims management and consultancy
solutions to the UK Insurance profession, announces its Final
Results for the 15 month period March 2013.
The period under review was extremely demanding for the UK
claims industry, particularly in the Property claims arena. As a
result, the Group has incurred losses of GBP1,236,318 for the 15
month period to March 2013 on a turnover of GBP2,459,666. This
compares with a loss of GBP90,060 and a turnover of GBP3,064,243
for the previous 12 month year to December 2011. RiIG was not alone
in suffering a significant downturn in property claim instructions
as a result of the benign weather at the end of 2011 and the
beginning of 2012. This had an impact on the financial results for
the 6 months to 30 June 2012.
The Group has implemented a programme to remove such dependency
and the success of services, such as Iteam, have provided a
valuable platform for diversification. In order to further
counterbalance this, the Group has continued to review its product
positioning to exploit expanding areas in the wider financial
services sector, including the handling of PPI and general
complaints in the UK market. Whilst the Group will continue to
handle weather related claims, going forward the structure now in
place has removed the dependency on this sector.
During the period under review, the Board has secured additional
working capital via the provision of loan capital of GBP150, 000
from a significant shareholder, Bob Morton, via Hawk Investment
Holdings Limited. In total, Executive Chairman John French, through
Spread Trustee Company Limited on behalf of The French Settlement,
and Hawk Investment Holdings Limited have provided loans totalling
GBP251,000 and GBP285,000 respectively. The Board has sees this as
a preferred route to issuing equity whilst the share price is low
and creating dilution for shareholders.
The Directors have implemented a change of year end from 31
December to 31 March and the next set of results will be the
interim results for the 6 months to 30 September 2013, which will
be announced during December 2013.
A concerted effort to broaden the client base and further
introduce additional services has proven to be successful. The
Group secured a significant contract with a major retail bank for
the Iteam division in relation to PPI claims and has subsequently
been successful in implementing and extending this contract through
to 2014. This has demonstrated the ability of the Group to transfer
our core Iteam unit into another business area. In addition, the
Board recognised that as the Group entered some of these new
business areas it would be necessary to recruit staff to fulfil our
commitments. Discussions with clients revealed a significant
challenge with regards to the recruitment of quality personnel
across the profession as a result of downsizing in the market over
recent years. To meet this challenge a small team was formed and
has successfully engaged personnel for PPI and our other projects.
As a consequence of their success, external clients have requested
their services and the new business unit "Absolute Professional
Talent - APT" was created. The unit has already reduced our
internal costs by GBP190,000 since April 2013, and the Group is
encouraged by the benefits - internally and externally - this unit
can provide in the placement market. This month the Group announced
that APT had secured a three year agreement with a leading
Professional Insurance Services organisation to provide recruitment
and placement services.
RiIG has a blend of solutions that capitalises on quality
service offerings and market reputation. Trading areas complement
each other as well as focussing on key areas where insurers and
financial services providers are finding it difficult or critical
to improve.
The Group now provides a comprehensive range of services through
a number of established units.
Iteam - in-sourced teams of claims and financial service
specialists who are managed and inserted into client operations. In
addition this model can be utilised on an Outsourced basis if
required.
Verify - Field investigation across Property; Motor; Liability
and counter fraud. In addition, the Group has received interest in
our surge proposition (requirement to support insurers and
adjusters in the event of a major weather event in the UK)
Consult - our consultancy division. As insurers can no longer
rely upon investment returns to create or enhance margin, there is
a greater requirement to examine operational costs and really
understand where savings and efficiencies can be made. This can
result in audit reviews being undertaken; change programme support
or indeed coaching and training. The recently introduced
apprenticeship programme is also proceeding well and is gaining
greater credibility.
Absolute Professional Talent - APT whilst not recruitment in its
purest form - it is more selective - the Directors have been
impressed with the performance of this team and the ground being
covered both internally and externally. The current year is proving
to be very encouraging in this area.
Commenting, Executive Chairman, John French, said;
"Following what has undoubtedly been a difficult period, the
Directors are encouraged by the market outlook. The business is
fundamentally about People - Our Own and Our Clients - be it their
staff or customers. The Group has highly experienced and motivated
personnel in all our divisions whose role - recognised by our
clients - is to improve their own staff as well as better their
customers' experience. This has been recognised during 2012/13 to
extend outside of the General Insurance sector and into the wider
financial services arena. This is something on which we can
continue to build. The Group is beginning to see the benefits of
the new contracts secured during the latter part of the period to
31 March 2013. Based on current levels of contracted business, the
Directors believe the opportunity to move to profit at the end of
the current financial year can be achieved. Historically, the Group
has a good record of converting enquires into contacts and with
strong prospects for further new contracts the Board views the
future with confidence.
I would like to extend my appreciation to my fellow Directors,
Management, Staff and Shareholders for their support during what
has been a difficult period."
John French Executive Chairman.
For further information:
Resources in Insurance Group plc
John French, Executive Chairman
www.riig.co.uk
Nominated Adviser and Joint Broker +44 (0) 7836 722 482
Zeus Capital Limited
Ross Andrews / Andrew Jones +44 (0) 161 831 1512
Joint Broker
Peterhouse Capital Finance Limited
Jon Levinson +44 (0) 20 7469 0935
Financial PR
Yellow Jersey PR Limited
Dominic Barretto +44 (0) 7768 537 739
STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 March 2013
Period ended Year ended
31 March 31 December
2013 2011
Notes GBP GBP
Revenue 2,459,666 3,064,243
Administrative expenses (3,661,037) (3,140,301)
Share option expense - (11,894)
Loss from operations (1,201,371) (87,952)
Interest receivable - -
Interest payable (34,947) (2,108)
Loss before tax (1,236,318) (90,060)
Taxation -
Loss for the period (1,236,318) (90,060)
Total comprehensive income
for the period (1,236,318) (90,060)
Basic loss per share 3 (0.336p) (0.028p)
Diluted loss per share 3 (0.336p) (0.028p)
The Group's operating loss relates to continuing operations.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the period ended 31 March 2013
Group & Company Share premium Share option Retained
Share capital account reserve deficit Total
GBP GBP GBP GBP GBP
Balance at 1
January
2011 2,186,825 1,341,177 31,647 (3,415,847 ) 143,802
Issue of options - - 11,894 - 11,894
Issue of shares 70,962 259,038 - - 330,000
Exercise of options - - - - -
Loss for the period - - - (90,060 ) (90,060)
---------------------- --------------------- -------------------- ------------------- -------------------------
Balance at 31
December
2011 2,257,787 1,600,215 43,541 (3,505,907 ) 395,636
====================== ===================== ==================== =================== =========================
Balance at 1
January
2012 2,257,787 1,600,215 43,541 (3,505,907 ) 395,636
Issue of options - - - - -
Issue of shares 40,000 160,000 - - 200,000
Costs of fund
raising - (8,500) - - (8,500)
Exercise of options - - - - -
Loss for the period - - - (1,236,318 ) (1,236,318)
---------------------- --------------------- -------------------- ------------------- -------------------------
Balance at 31 March
2013 2,297,787 1,751,715 43,541 (4,742,225) (649,182)
====================== ===================== ==================== =================== =========================
CONSOLIDATED BALANCE SHEET
31 March 2013
31 March 31 December
2013 2011
Notes GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 16,044 23,817
---------- --------------
Current assets
Work in progress 12,123 368,501
Trade and other receivables 541,800 337,384
Cash and cash equivalents 26,094 135,343
580,017 841,228
---------- --------------
Total assets 596,061 865,045
EQUITY AND LIABILITIES
Equity
Share capital 2,297,787 2,257,787
Share premium account 1,751,715 1,600,215
Share option reserve 43,541 43,541
Retained deficit (4,742,225 ) (3,505,907 )
Equity attributable to equity
holders of the parent (649,182) 395,636
---------- --------------
Current liabilities
Trade and other payables 858,743 439,409
Convertible loan notes 30,000 30,000
Secured loans 4 270,000 -
Other loans 5 86,500 -
1,245,243 469,409
Total equity and liabilities 596,061 865,045
These financial statements were approved by the Board of
Directors on 27(th) September 2013
Stephen J Coke
Director
Company Registration Number 03922895
CONSOLIDATED AND COMPANY CASH FLOW STATEMENT
For the period ended 31 March 2013
2013 2011
GBP GBP
Cash flows from operating activities
Loss from operations (1,201,371) (87,952 )
Adjustments for:
Depreciation of property, plant
and equipment 9,795 12,212
Loss on disposal of property, - -
plant and equipment
Share option expense - 11,894
------------- --------
Operating cash flows before
movements in working capital (1,191,576) (63,846 )
Decrease/(Increase) in work
in progress 356,378 (368,096)
(Increase)/Decrease in receivables (204,416) 6,547
Increase in payables 419,334 32,974
------------- --------
Cash used in operations (620,280) (392,421)
Interest paid (34,947) (2,108)
Tax refunded - -
------------- --------
Net cash used in operating activities (655,227) (394,529)
------------- --------
Cash flows from investing activities
Purchases of property, plant
and equipment (2,022) (9,342)
------------- --------
Net cash used in investing activities (2,022) (9,342)
------------- --------
Cash flows from financing activities
Proceeds from issue of shares 191,500 360,000
Proceeds from loans 356,500 30,000
------------- --------
Net cash from financing activities 548,000 390,000
------------- --------
Net decrease in cash and cash
equivalents (109,249) (13,871)
Cash and cash equivalents at
beginning of year 135,343 149,214
------------- --------
Cash and cash equivalents at
end of year 26,094 135,343
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 March 2013
1. General information
The Group is incorporated in the United Kingdom. The address of
the registered office is given on page 1. The nature of the Group's
operations and its principal activities are set out in note 3. The
Group extended its accounting period to 31(st) March 2013. The
results presented are for the fifteen month period 1(st) January
2011 to 31(st) March 2013. Comparatives shown are for the twelve
months to 31(st) December 2011.
2. Significant accounting policies
Going concern
The group incurred a net loss of GBP1,236,318 during the period
ended 31 March 2013 and, at that date, the group's current
liabilities exceeded its total assets by GBP649,182 and it had net
current liabilities of GBP665,226. As a result, the group faced
significant cash flow problems in the period, and there remains
uncertainty over the ability of the group to settle its liabilities
as they fall due.
The Group has in place an agreed payment plan with HMRC to clear
arrears of PAYE which built up over the period. Since the period
end, the Group has been able to meet its commitment to paying down
the arrears [and the Group expects to be able to continue to meet
all of the remaining monthly payment plan repayments over the life
of the agreement]. The PAYE arrears are due to be cleared by March
2015.
During the period the Group issued secured loan notes of
GBP270,000 to Hawk Investment Holdings Limited and Spread Trustees
Limited, on behalf of the French Settlement, who are both
substantial shareholders in the Group. The loans notes are due for
repayment in the 2014 year. There is uncertainty over the ability
of the Group to make the repayments. The Directors are of the view
that the Group will continue to receive the support of these two
key shareholder lenders, through deferral of the loan repayment
date, until the Group is in a position to be able to repay the loan
finance. If the Group is unable to make the repayments as they fall
due, Hawk Investment Holdings Limited and Spread Trustees Limited
have confirmed, that subject to the review of the Group's financial
position at the time, they will consider refinancing the loans.
The directors, based on current management information and
financial projections, have a reasonable expectation that the Group
has adequate resources to continue in operational existence for the
foreseeable future.
The company has prepared detailed profit and cash flow
projections; projected gross profit margins are considered
realistic and consistent with past performance, the existing and
anticipated pricing structure and order book. Projected debtor
collections are also considered realistic and consistent with past
performance. Overhead levels have been closely considered and
consistent with cost saving measures implemented.
The Board has taken steps to make the cost base more responsive
to changes in demand for the Group's services. The Board considers
these steps will result in better utilisation of staff and lower
recruitment costs. The Board considers and the risk of losing
significant customers to be low, due to the nature of the services
and contracts in place.
The Group's main products are considered to be robust and are
anticipated to benefit from external factors such as further
Ministry of Justice reforms and industry attitudes to the claims
environment. Significant new business has not been factored into
the financial projections, although there are a number of new
business contracts in negotiation. Current market response and the
conversion of potential customers have both been good.
There are additional plans in place to alter the amounts and
timing of cash flows so unexpected needs or opportunities can be
addressed. Improved trading, confidence from existing shareholders
and current investment market conditions give the directors'
confidence that the Group will be able to capitalise on the growth
opportunities that present themselves.
In August 2013, after the period end, the Group received a loan
of GBP150,000 for working capital, from Hawk Investment Holdings
Limited.
The directors, whilst recognising the uncertainty over the
Group's ability to settle liabilities as they fall due, continue to
adopt the going concern basis in the preparation of the financial
statements.
3. Loss per share
The calculation of the basic and fully diluted loss per share is
based on the loss for the year of GBP1,236,318 (2011: loss of
GBP90,060) and on 368,193,511 ordinary shares, (2011: 317,465,150)
being the weighted average number of ordinary shares in issue
during the year. In calculating fully diluted loss per share, the
weighted average number of shares was 368,193,511 (2011:
317,465,150) ordinary shares.
4. Secured loans
2013 2011
Group Company Group Company
GBP GBP GBP GBP
Hawk Investment Holdings Limited 135,000 135,000 - -
Spread Trustee Company Limited on behalf 135,000 135,000 - -
of the French Settlement ________ _______ _______ _______
270,000 270,000 - -
Both loans are secured by way of a debenture and bear interest
at 10% per annum. Both loans are due for capital repayment in
January 2014 and interest due is paid monthly. Whilst the Group's
ability to meet the capital repayment terms is uncertain, being
dependent on its future cash flow, both lenders are supportive. The
lenders have confirmed that, subject to a review of the Group's
financial position at the time, they will consider refinancing the
loans on a similar basis. The loan from Hawk Investment Holdings
Limited is made available by significant shareholder Bob Morton.
The Loan from Spread Trustee Company Limited on behalf of the
French Settlement has been made available to the Group because the
French Settlement is a Trust in which members of John French's
family have a beneficial interest.
The Directors have every expectation that the Group will
continue to receive the support provided, by two major
shareholders, including rolling over, or postponing capital
repayments to a farther future date, should this be required.
5. Other Loans
2013 2011
Group Company Group Company
GBP GBP GBP GBP
Spread Trustee Company Limited on behalf
of the French Settlement 86,500 86,500 - -
The above loan is unsecured and bears interest at 10% per annum.
The loan was made available to the Group through Executive Chairman
John French. The loan was originally provided for working capital
as a short term bridging loan for 14 days, based on the loan
agreement in place. However, the lender has been happy to roll over
the loan and interest continues to be paid on a monthly basis.
6. Event Subsequent to the balance sheet date
In August 2013 the Group was advanced a loan of GBP150,000 to
assist with working capital, by Hawk Investment Holdings Limited, a
substantial shareholder in the Group. This loan was made available
under the existing security in place for the loan disclosed in note
18, and demonstrates the continued confidence that Hawk Investment
Holdings Limited have in the Group. The interest payable is at 10%
per annum and the loan is due for repayment in August 2014.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS
Period ended 31 March 2013
We have audited the Group's financial statements on pages 15 to
32. The financial reporting framework that has been applied in
their preparation is applicable law and International Financial
Reporting Standards (IFRSs) as adopted by the European Union and as
regards the parent company financial statements, as applied in
accordance with the provisions of the Companies Act 2006.
This report is made solely to the Group's members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the
Group's members those matters we are required to state to them in
an auditors' report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Group and the Group's members as a body, for
our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities
Statement, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true
and fair view. Our responsibility is to audit the financial
statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us
to comply with the Auditing Practices Board's Ethical Standards for
Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of: whether the accounting policies are
appropriate to the group's and the parent company's circumstances
and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the
directors; and the overall presentation of the financial
statements. In addition, we read all the financial and
non-financial information in the Directors' Report to identify
material inconsistencies with the audited financial statements. If
we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report.
Emphasis of Matter
In forming our opinion on the financial statements, which is not
modified, we have considered the adequacy of the disclosure made in
note 2 to the financial statements concerning the group's ability
to continue as a going concern. The group incurred a net loss of
GBP1,236,318 during the period ended 31 March 2013 and, at that
date, the group's current liabilities exceeded its total assets by
GBP649,182 and it had net current liabilities of GBP665,226. These
conditions, as explained in note 2 to the financial statements,
indicate the existence of a material uncertainty which may cast
significant doubt about the group's ability to continue as a going
concern. The financial statements do not include the adjustments
that would result if the group was unable to continue as a going
concern.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state
of affairs of the group and parent company as at 31 March 2013;
the group financial statements have been prepared in accordance
with IFRSs as adopted by the European Union;
the parent company financial statements have been prepared in
accordance with IFRSs as adopted by the European Union and as
applied in accordance with the provisions of the Companies Act
2006; and
the financial statements have been prepared in accordance with
the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report
for the financial period for which the financial statements are
prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report if, in our
opinion:
-- adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been received
from branches not visited by us; or
-- the parent company financial statements are not in agreement
with the accounting records and returns; or
-- certain disclosures of directors' remuneration specified by
law are not made; or
-- we have not received all the information and explanations we
require for our audit.
Richard Collis (Senior Statutory Auditor)
For and on behalf of
Saffery Champness Lion House
Chartered Accountants Red Lion Street
Statutory Auditors London, WC1R 4GB
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEWFLWFDSEEU
Resources In Insurance Group (LSE:RIIG)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Resources In Insurance Group (LSE:RIIG)
Gráfica de Acción Histórica
De May 2023 a May 2024