TANFIELD GROUP PLC

Interim / Quarterly Report • Sep 6, 2017

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RNS Number : 9786P

Tanfield Group PLC

06 September 2017

Tanfield Group Plc

("Tanfield", or "the Company")

Interim Results for the six-month period to 30 June 2017

Tanfield, an investing company as defined by AIM Rules, announces its half year results for the period ending 30 June 2017. The unaudited financial information will shortly be available on the Company website at www.tanfieldgroup.com.

Background

The Company is currently defined as an investing company that has two passive investments. This status resulted from the disposal of Smith Electric Vehicles in 2010 and the disposal of Snorkel Europe Limited in October 2013.  Tanfield currently owns 49% of Snorkel International Holdings LLC ("Snorkel") and 5.76% of Smith Electric Vehicles Corp. ("Smith").

The strategy of the Company in relation to these investments is to return as much as possible of any realised value to shareholders as events occur and circumstances allow, subject to compliance with any legal requirements associated with such distributions.

Summary

·     Further sales growth achieved by Snorkel in the first six months of the year, up 13% compared to H1 2016 and profitable for the period.

·     Snorkel carrying value is £36.3m which represents approximately 23p per share.

·     Smith continues to be held at a nil balance sheet value following the impairment of the investment at the end of 2015. 

Overview of investments

Based on the unauditied financial information received from Snorkel, during the first six months of 2017 the business achieved sales of $79.7m, an increase of 13% compared to the same period in 2016, with an operating profit, excluding depreciation, of $1.5m (H1 2016: $1.4m loss).  Should the trend of sales growth continue for the remainder of the year, the Board believes 2017 could be a profitable year for the Snorkel business and is of the opinion that the investment in Snorkel will result in a return to shareholders in the future.  However, at the current rate of growth it is not expected to materialise until after 30 September 2018, when the outcome becomes uncertain and the return to shareholders could therefore be greater or less than the current carrying value.

In 2015 the investment in Smith was impaired to nil due to the uncertainty around its future and the level of funding it required. The situation continues to be monitored and should some significant progress be made then an update will be provided.

For further information:

Tanfield Group Plc

Daryn Robinson                                                                0700 349 7489

WH Ireland Limited - Nominated Advisor

James Joyce / Alex Bond                                              020 7220 1666

Peterhouse Corporate Finance - Broker

Peter Greensmith / Duncan Vasey                           020 7220 9797

STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDING 30 JUNE 2017
					Six months to 30 Jun 17 (unaudited)				Six months to 30 Jun 16 (unaudited)			Year to  31 Dec 16  (audited)
					£000's				£000's			£000's
Revenue						-			-		-
Staff costs						(44)			(44)		(85)
Other operating income						16			14		30
Other operating expenses						(81)			(79)		(182)
(Loss)/profit from operations before impairments						(109)			(109)		(237)
Finance expense						-			(8)		(13)
Finance income						-			-		1
Net finance expense						-			(8)		(12)
Loss from operations before tax						(109)			(117)		(249)
Taxation						-			-		-
Loss & total comprehensive income for the period attributable to equity shareholders						(109)			(117)		(249)
Loss per share
Earnings/(loss) per share from operations
Basic and diluted (p)						(0.1)			(0.1)		(0.2)

BALANCE SHEET
AS AT 30 JUNE 2017
					30 Jun 17 (unaudited)		30 Jun 16 (unaudited)		31 Dec 16 (audited)
					£000's		£000's		£000's
Non current assets
Non current Investments					36,283		36,283		36,283
					36,283		36,283		36,283
Current assets
Trade and other receivables					65		102		61
Cash and cash equivalents					166		364		269
					231		466		330
Total assets					36,514		36,749		36,613
Current liabilities
Trade and other payables					101		100		91
					101		100		91
Non-current liabilities
Other payables					-		262		-
					-		262		-
Total liabilities					101		362		91
Equity
Share capital					7,816		7,686		7,816
Share premium					17,190		17,053		17,190
Share option reserve					459		461		459
Special reserve					66,837		66,837		66,837
Merger reserve					1,534		1,534		1,534
Retained earnings					(57,423)		(57,184)		(57,314)
Total equity					36,413		36,387		36,522
Total equity and total liabilities					36,514		36,749		36,613

STATEMENT OF CHANGES IN EQUITY

		Share capital				Share premium			Share option reserve		Merger reserve				Special reserve				Retained earnings				Total
		£000's				£000's			£000's		£000's				£000's				£000's				£000's
For the 6 month period ended 30 June 2017
At 1 January 2017		7,816				17,190			459		1,534				66,837				(57,314)				36,522
Comprehensive income
Loss for the period		-				-			-		-				-				(109)				(109)
Total comprehensive income for the period		-				-			-		-				-				(109)				(109)
At 30 June 2017		7,816				17,190			459		1,534				66,837				(57,423)				36,413
For the 6 month period ended 30 June 2016
At 1 January 2016		7,546				16,800			461		1,534				66,837				(57,067)				36,111
Comprehensive income
Loss for the period		-				-			-		-				-				(117)				(117)
Total comprehensive income for the period		-				-			-		-				-				(117)				(117)
Transactions with owners in their capacity as owners:-
Issuance of new shares		140				253			-			-				-				-				393
At 30 June 2016		7,686				17,053			461		1,534				66,837				(57,184)				36,387
For the year ended 31 December 2016
At 1 January 2016		7,546				16,800			461			1,534				66,837				(57,067)				36,111
Comprehensive income
Profit for the year		-				-			-			-				-				(249)				(249)
Total comprehensive income for the year		-				-			-			-				-				(249)				(249)
Transactions with owners in their capacity as owners:-
Issuance of new shares		270				390			-			-				-				-				660
Share based payments		-				-			(2)			-				-				2				-
At 31 December 2016		7,816				17,190			459			1,534				66,837				(57,314)				36,522

CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDING 30 JUNE 2017
			Six months to 30 Jun 17 (unaudited)	Six months to 30 Jun 16 (unaudited)		Year to  31 Dec 16  (audited)
			£000's	£000's		£000's
Loss before interest and taxation			(109)	(109)		(237)
Operating cash flows before movements in working capital			(109)	(109)		(237)
Decrease/(increase) in receivables			5	(12)		25
Increase/(decrease) in payables			1	(1)		(273)
Net cash used in operating activities			(103)	(122)		(485)
Cash flow from financing activities
Proceeds from issuance of ordinary shares net of costs			-	392		660
Net cash from financing activities			-	-		660
Net (decrease)/increase in cash and cash equivalents			(103)	270		175
Cash and cash equivalents at the start of period			269	94		94
Cash and cash equivalents at the end of the period			166	364		269

1  Basis of preparation The Interim Report of the Company for the six months ended 30 June 2017 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 2016 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 2016, as described in those financial statements.  In particular, the accounts have been prepared on a going concern basis, and as set out on page 16 of those financial statements.
	3  Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
Number of shares							Six months					Six months			Year to
							to 30 Jun 17					to 30 Jun 16			31 Dec 16
							000's					000's			000's
Weighted average number of ordinary shares for the purposes of basic earnings per share											156,324	152,464			153,677
Effect of dilutive potential ordinary shares from share options											129	149			122
Weighted average number of ordinary shares for the purposes of diluted earnings per share											156,453	152,613			153,799
Loss							Six months					Six months			Year to
							to 30 Jun 17					to 30 Jun 16			31 Dec 16
From operations							000's					000's			000's
Loss for the purposes of basic earnings per share being net profit attributable to owners of the parent											(109)	(139)			(249)
Potential dilutive ordinary shares from share options										-		-			-
Loss for the purposes of diluted earnings per share										(109)		(139)			(249)
Loss per share from operations
Basic (p)						(0.1)						(0.1)			(0.2)
Diluted (p) a						(0.1)						(0.1)			(0.2)
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 June 2016 and June 2017.

This information is provided by RNS

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