26 September
2019
Energiser Investments plc
('Energiser' or the 'Group')
Half-yearly
results to 30 June 2019
Energiser announces its half-yearly accounts for the six months
to 30 June
2019.
Chairman’s statement
I am pleased to present the interim results for Energiser
Investments plc (“Energiser”, “the Group” or “the Company”) for the
half year ended 30 June 2019.
Energiser Investments plc is an investment company whose
strategy is to invest in quoted and unquoted companies to achieve
capital growth. The Company continues to look for opportunities and
is currently invested in an AIM listed company, KCR Residential
REIT plc (“KCR”). In March
2018, Energiser acquired 2,435,710 new KCR ordinary shares
at 70p a share for a total of £1,704,997. As at 30 June 2019, the share price of KCR had dropped
to 49p per share resulting in the Company’s investment to be
written down to £1,193,000.
KCR is an AIM quoted Real Estate Investment Trust (“REIT”)
focused on investment in the UK residential Private Rented Sector
(“PRS”). KCR invests in whole apartment blocks of studio, one and
two-bedroom flats in city centres, close to railway stations and
shopping facilities. It focuses on more affordable rental
properties for private tenants.
KCR’s portfolio of properties was valued at £24.6m at
31 December 2018 an increase of
£15.1m compared to 31 December 2017. Its net asset value per
share at 31 December 2018 was 70.97p
(30 June 2018: 88.17p). KCR’s
board remains positive in its strategy of investing in low to
mid-price blocks of apartments for rental. It has found the
reluctance of equity investors to fund companies through the stock
market challenging for its own growth plans as it relies on raising
equity and debt capital to grow its portfolio and rental
income.
On 12 July 2019 KCR announced some
important developments to raise working capital, to provide a
pipeline of new acquisitions and to extend its reach into
international markets. The proposals, which were passed at a
general meeting of KCR, are expected to provide it with access to
capital, international development expertise and refinancing
options. This is expected to accelerate KCR’s objective of
providing capital growth and dividend streams to investors.
It will also enable KCR to extend its reach beyond the UK into new
residential markets, including Australia, New
Zealand and Germany.
Results
The Group had no revenues during the period (2018: Nil) as it
had sold its revenue generating investments. The Group made a loss
before tax of £172,000 (2018: profit £298,000) which included a
provision against the investment in KCR of £122,000.
Administrative expenses decreased from £63,000 to £50,000.
The Group’s net assets decreased to £1.10m (2018: £2.07m)
translating into net asset value per share of 0.89p per share
(2018:1.67p).
Outlook
We will continue to manage our investment in KCR and will also
look for other investment opportunities to achieve capital
growth.
Stephen
Wicks
Chairman
Group statement of comprehensive
income
|
|
Unaudited 6 months to 30 June 2019 |
Unaudited
6 months to 30 June 2018 |
Audited
year to 31 December 2018 |
|
|
Note |
£’000 |
£’000 |
£’000 |
|
Continuing
operations |
|
|
|
|
|
Revenue arising in the
course of ordinary activities |
|
— |
— |
— |
|
Cost of sales |
|
— |
— |
(1) |
|
Gross loss |
|
— |
— |
(1) |
|
Administrative
expenses |
|
(50) |
(63) |
(92) |
|
Operating
loss |
5 |
(50) |
(63) |
(93) |
|
Finance income |
|
— |
5 |
6 |
|
Other gains and
losses |
(122) |
356 |
(411) |
|
(Loss)/profit
before taxation |
5 |
(172) |
298 |
(498) |
|
(Loss)/profit for
the period attributable to shareholders of the Company |
|
(172) |
298 |
(498) |
|
Total comprehensive
(loss)/profit |
|
(172) |
298 |
(498) |
|
(Loss)/earnings per
share |
|
|
|
|
|
Basic and
diluted (loss)/earnings per share from total and continuing
operations |
4 |
(0.14)p |
0.24p |
(0.40)p |
|
|
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 as at 30 June 2019 |
Unaudited
as at 30 June 2018 |
Audited
as at 31 December 2018 |
|
Note |
£’000 |
£’000 |
£’000 |
ASSETS |
|
|
|
|
Non-current
assets |
|
|
|
|
Investments |
6 |
1,193 |
2,143 |
1,315 |
|
|
1,193 |
2,143 |
1,315 |
Current
assets |
|
|
|
|
Trade and other
receivables |
|
15 |
44 |
8 |
Cash and cash
equivalents |
|
163 |
237 |
177 |
|
|
178 |
281 |
185 |
Total
assets |
|
1,371 |
2,424 |
1,500 |
LIABILITIES |
|
|
|
|
Current
liabilities |
|
|
|
|
Trade and other
payables |
|
267 |
270 |
190 |
Deferred tax |
|
— |
82 |
34 |
|
|
267 |
352 |
224 |
Total
liabilities |
|
267 |
352 |
224 |
Net assets |
|
1,104 |
2,072 |
1,276 |
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 |
|
(9,577) |
(8,609) |
(9,405) |
Total
equity |
|
1,104 |
2,072 |
1,276 |
Group statement of changes in
equity
|
|
Share |
|
|
|
|
|
Share |
premium |
Convertible |
Merger |
Retained |
Total |
|
capital |
account |
loan |
reserve |
earnings |
equity |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
Balance at 1
January 2018 |
2,392 |
7,189 |
88 |
1,012 |
(8,907) |
1,774 |
Total comprehensive
profit |
— |
— |
— |
— |
298 |
298 |
Balance at 30 June
2018 |
2,392 |
7,189 |
88 |
1,012 |
(8,609) |
2,072 |
Total comprehensive
loss |
— |
— |
— |
— |
(796) |
(796) |
Balance at 31
December 2018 |
2,392 |
7,189 |
88 |
1,012 |
(9,405) |
1,276 |
Total comprehensive
loss |
— |
— |
— |
— |
(172) |
(172) |
Balance at 30 June
2019 |
2,392 |
7,189 |
88 |
1,012 |
(9,577) |
1,104 |
Group statement of cash flows
|
Unaudited 6 months to 30 June 2019 |
Unaudited
6 months to 30 June 2018 |
Audited
year to 31 December 2018 |
|
£’000 |
£’000 |
£’000 |
Cash flows from
operating activities |
|
|
|
(Loss)/profit before
taxation |
(172) |
298 |
(498) |
Adjustments for: |
|
|
|
Loss on sale of
investment properties |
— |
— |
23 |
Fair value adjustment
for listed investments |
122 |
(356) |
390 |
Interest income |
— |
(5) |
(6) |
Changes in working
capital: |
|
|
|
- (Increase)/decrease
in trade and other receivables |
(7) |
(11) |
3 |
- Increase in trade
and other payables |
43 |
52 |
5 |
Net cash used in
operating activities |
(14) |
(22) |
(83) |
Cash flows from
investing activities |
|
|
|
Interest received |
— |
— |
6 |
Purchase of
investments |
— |
(1,705) |
(1,705) |
Net cash used in
investing activities |
— |
(1,705) |
(1,699) |
Cash flows from
financing activities |
|
|
|
Interest received |
— |
5 |
— |
Net cash generated
by financing activities |
— |
5 |
— |
Net decrease in
cash and cash equivalents |
(14) |
(1,722) |
(1,782) |
Cash and cash
equivalents at beginning of period |
177 |
1,959 |
1,959 |
Cash and cash
equivalents at end of period |
163 |
237 |
177 |
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.
Energiser Investments plc is the Group’s ultimate parent
company. It is incorporated and domiciled in Great Britain. The address of Energiser
Investments plc’s registered office, which is also its principal
place of business, is Burnham Yard, London End, Beaconsfield,
Buckinghamshire, HP9 2JH.
Energiser Investments 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 25 September 2019.
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 2018 have been filed with the
Registrar of Companies and are available at
www.energiserinvestments.co.uk. 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.
The consolidated half-yearly financial report should be read in
conjunction with the annual financial statements for the year ended
31 December 2018, 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 2018. The unaudited interim group
statement of financial position for the 6 months ended 30 June 2018 has therefore been restated to
reclassify the movement in the fair value in investments from other
comprehensive income to fair value through profit or loss in line
with the requirements of IFRS 9.
4. (Loss)/earnings per ordinary
share
The (loss)/earnings 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 6 months to 30 June 2019 |
Unaudited
6 months to 30 June 2018 |
Audited
year to 31 December 2018 |
(Loss)/profit
attributable to equity shareholders £’000 |
(172) |
298 |
(498) |
(Loss)/earnings per
ordinary share |
(0.14)p |
0.24p |
(0.40)p |
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.
5. Income and segmental analysis
|
Unaudited 6 months to 30 June 2019 |
Unaudited
6 months to 30 June 2018 |
Audited
year to 31 December 2018 |
|
£’000 |
£’000 |
£’000 |
Segment
result |
|
|
|
Investment
activities: |
|
|
|
Administrative
expenses |
(50) |
(75) |
(105) |
|
(50) |
(75) |
(105) |
Rental
activities: |
|
|
|
Rental income |
— |
— |
(1) |
Administrative
expenses |
— |
12 |
13 |
|
— |
12 |
12 |
Operating
loss |
(50) |
(63) |
(93) |
Finance income |
— |
5 |
6 |
Other gains and
losses |
(122) |
356 |
(411) |
(Loss)/profit
before tax |
(172) |
298 |
(498) |
|
Unaudited as at 30 June 2019 |
Unaudited
as at 30 June 2018 |
Audited as at 31 December 2018 |
|
£’000 |
£’000 |
£’000 |
Segment
assets |
|
|
|
Investment
activities: |
|
|
|
Non-current
assets |
1,193 |
2,143 |
1,315 |
Current assets -
other |
178 |
237 |
185 |
|
1,371 |
2,380 |
1,500 |
Rental
activities: |
|
|
|
Current assets –
other |
— |
44 |
— |
|
— |
44 |
— |
Total
assets |
1,371 |
2,424 |
1,500 |
Segment
liabilities |
|
|
|
Investment
activities: |
|
|
|
Current
liabilities |
267 |
234 |
224 |
|
267 |
234 |
224 |
Rental: |
|
|
|
Current
liabilities |
— 2 |
2 |
— |
|
— |
2 |
— |
|
|
|
|
Current liabilities –
corporation tax |
—34 |
34 |
— |
Current liabilities –
deferred tax |
— |
82 |
— |
|
—116 |
116 |
— |
Total
liabilities |
267 |
352 |
224 |
Total assets less
total liabilities |
1,104 |
2,072 |
1,276 |
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
£’000 |
Cost |
|
At 1 July 2017 and 31
December 2017 |
— |
Additions |
1,705 |
Change in fair value
recognised in profit and loss |
438 |
At 30 June
2018 |
2,143 |
Fair value
movements |
|
Change in fair value
recognised in profit and loss |
(828) |
At 31 December
2018 |
1,315 |
Change in fair value
recognised in profit and loss |
(122) |
At 30 June
2019 |
1,193 |
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Energiser Investments plc
John Depasquale +44 (0)
1494 762450
Nishith Malde
+44 (0) 1494 762450
Cairn Financial Advisers LLP
Jo Turner
+44 (0) 20 7213 0880
Sandy Jamieson