ACUY RMPAR
28 September 2017
Energiser Investments plc
('Energiser' or the 'Company')
Posting of Interim Results to 30 June 2017
Energiser announces that it has posted its Interim accounts for the six months
to 30 June 2017
Highlights
* Net assets increased to £1,804,000 (2016: £340,000) resulting in a net
asset value per share increase of 87% to 1.46p (2016: 0.78p)
* Revenue increased by 6.5% and net rental income by 10%
* Improved financial performance relates to the successful completion of the
last sale at the Kingswood, Surrey development, and, continued high
occupancy across the Wellingborough property portfolio
Dominic White, Chief Executive, commented
"We are pleased with the financial progress of Energiser over the period to
June 2017. To maximise shareholder value, the Company is considering the sale
of the Wellingborough portfolio which would further add to the capital
available for investment into new opportunities; we look forwards to updating
shareholders on progress in our micro self-storage strategy in due course."
For further information, please visit http://www.energiserinvestments.co.uk/ or
contact:
Energiser Investments plc +44 1494 762 450
Dominic White, Chief Executive
Nishith Malde, Director
Cairn Financial Advisers LLP +44 20 7213 0880
Jo Turner / Sandy Jamieson
Energiser Investments plc
Energiser is an AIM quoted investing company investing predominantly in
property operating platforms and associated assets in the self-storage,
serviced-apartments and secured property lending sectors.
Chairman's Statement
I am delighted to report on the Group's Interim results for the six months to
30 June 2017.
I reported in the 2016 year end report that we maintained greater than 95%
occupancy at the Wellingborough investment portfolio, saw the majority of the
development loan repaid at the Kingswood, Surrey development and made great
progress on the sourcing, analysis and negotiation of a number of potential
transactions. We also raised new equity. I am pleased to say that we have
continued to make exciting progress on the current portfolio and new potential
transactions, such as the micro self-storage opportunity as announced on 13
June 2017.
Results
Energiser continues to hold the 20 residential properties at Wellingborough.
The gross rental income from the portfolio for the six months to 30 June 2017
was £82,000 (2016: £77,000), an increase of 6.5% over the previous year. The
net rental income, after relevant operating costs, increased 10.2% to £65,000
(2016: £59,000). Energiser's administrative expenses have increased to £
109,000 (2016: £35,000) for the half year, predominantly due to the effect of
engaging our Chief Executive, Dominic White in October 2016 and further
increases due to being a listed company. The loss before taxation improved to
£81,000 (2016: £161,000) with loss per share of 0.07p (2016: 0.32p). Net
assets have increased to £1,804,000 (2016: £340,000) principally due to
crystallising a £765,000 performance related fee following successful
completion of the Kingswood development, and, the £1.26 million of new equity
raised in December 2016. This results in a 87.2% increase in net asset value
per share to 1.46p (2016: 0.78p). The Directors do not recommend the payment
of a dividend.
Operations
The 20 residential properties in Wellingborough, Northamptonshire, have
continued to maintain their high level of occupancy at more than 95% over the
period. As outlined in the last report, the Directors believe that the value
of this portfolio is reaching a ceiling and that the associated capital could
be better invested into new opportunities. The small size of the individual
residential units and the strong letting history of the portfolio should be
attractive to residential investors. The Directors are considering a sale of
the properties in the coming months.
Energiser's investment in the development funding of 12 residential properties
in Kingswood, Surrey has successfully completed. The last unit was sold in the
six months to June and all payments have been received. The back-to-back
funding that Energiser raised relating to this investment has also been repaid
in full.
In June, Energiser committed to an initial investment of £0.6m with an industry
leading self-storage entrepreneur, Paul Fahey, to help him launch a micro
self-storage operator. Self-storage is a fast growing industry in the UK.
Traditionally, self-storage facilities operate in large stores positioned on
the edge of towns and cities. Micro self-storage focuses on smaller facilities
within dense urban centres and on the edge of smaller towns. Due diligence
relating to the acquisition of the first micro self-storage facility is
underway. We are in parallel working on potential corporate opportunities to
accelerate our entry into this sector.
Outlook
The Group's strategy is to focus on and engage in investment opportunities
within the real estate sector, in particular in real estate operating
companies. Our focus has been on three areas - residential, self-storage and
short-term property lending. We are currently focused on ways to realise the
equity within our Wellingborough portfolio so that it can be recycled into new
opportunities with higher potential returns, and, the live opportunities in the
self-storage sector.
We look forward to sharing more details of Energiser's progress with
shareholders in the coming months.
Stephen Wicks
Non-executive Chairman
28 September 2017
Group statement of comprehensive income
Unaudited Unaudited Audited
6 months 6 months year to
to 30 June to 30 June 31
2017 2016 December
2016
Note £'000 £'000 £'000
Continuing operations
Revenue arising in the course of ordinary activities 82 77 160
Cost of sales (16) (17) (42)
Gross profit 66 60 118
Administrative expenses (109) (35) (110)
Operating profit 5 (43) 25 8
Finance costs (38) (193) (208)
Finance income - 7 (11)
Loss before taxation 5 (211)
(81) (161)
Taxation - - -
Loss for the period attributable to shareholders of the (81) (161) (211)
Company
Other comprehensive income - fair value adjustment to the 103 155 (5)
profit on mezzanine funding arrangement
Related taxation/deferred taxation 42 (73) 14
Other comprehensive income for the period, net of tax 145 82 9
Total comprehensive income 64 (202)
(79)
Loss per share
Basic and diluted loss per share from total and 4 (0.07)p (0.32)p (0.40)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 2017 June 2016 December
2016
Note £'000 £'000 £'000
ASSETS
Non-current assets
Investment property 6 2,844 2,844 2,844
2,844 2,844 2,844
Current assets
Trade and other receivables 16 21 72
Available-for-sale financial assets - 654 553
Cash and cash equivalents 588 39 1,120
604 714 1,745
Total assets 3,448 3,558 4,589
LIABILITIES
Current liabilities
Trade and other payables 332 791 733
Short term borrowings 80 946 694
Deferred tax - 165 126
412 1,902 1,553
Non-current liabilities
Long term borrowings 1,232 1,316 1,288
1,232 1,316 1,288
Total liabilities 1,644 3,218 2,841
Net assets 1,804 340 1,748
EQUITY
Share capital 2,392 2,312 2,392
Share premium account 7,190 5,747 7,198
Convertible loan 88 88 88
Merger reserve 1,012 1,012 1,012
Revaluation reserve - 610 537
Retained earnings (8,878) (9,429) (9,479)
Total equity 1,804 340 1,748
Group statement of changes in equity
Share
Share premium Convertible Merger Revaluation Retained Total
capital account loan reserve reserve earnings equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2016 2,312 5,747 88 1,012 528 (9,268) 419
Total comprehensive loss - - - - 82 (161) (79)
Balance at 30 June 2016 2,312 5,747 88 1,012 610 (9,429) 340
Issue of equity 80 1,451 - - - - 1,531
Total comprehensive loss - - - - (73) (50) (123)
Balance at 31 December 2,392 7,198 88 1,012 537 (9,479) 1,748
2016
Legal fees on issue of - (8) - - - - (8)
equity
Realisation of available - - - - (537) 537 -
for sale financial asset
Total comprehensive income - - - - - 64 64
Balance at 30 June 2017 2,392 7,190 88 1,012 - (8,878) 1,804
Group statement of cash flows
Unaudited 6 Unaudited 6 Audited
months to 30 months to year to
June 2017 30 June 31
2016 December
2016
£'000 £'000 £'000
Cash flows from operating activities
Loss before taxation (81) (211)
(161)
Adjustments for:
Interest expense 38 208
170
Interest Income - 11
-
Changes in working capital:
- Decrease/(increase) in trade and other receivables (33)
755 17
- Decrease in trade payables 16 (75) (127)
Net cash generated by/(used in) operating activities 728 (49) (152)
Cash flows from investing activities
Mezzanine finance facility repaid - 3,408
3,305
Net cash generated by investing activities - 3,408
3,305
Cash flows from financing activities
Re-payment of borrowings (670) (3,372) (3,670)
Net proceeds on issue of ordinary shares (8) - 1,530
Interest paid (582) (63) (214)
Net cash used in financing activities (1,260) (3,435) (2,354)
Net (decrease)/increase in cash and cash equivalents (532) (179) 902
Cash and cash equivalents at beginning of period 1,120 218 218
Cash and cash equivalents at end of period 588 39 1,120
1. Nature of operations and general information
The principal activity of the Group is as an investment company investing in
quoted and unquoted companies to achieve capital growth. The Group also holds a
property development acquired by way of its principal activity. The properties
are held for sale with rental income arising from short term lets.
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 Decimal Place, Chiltern Avenue, Amersham, Buckinghamshire, HP6
5FG.
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 28 September 2017.
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 2016 have been filed with the Registrar of Companies and are
available at http://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 2016, 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 2016.
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 123,912,956 ordinary shares of 0.1p (2016:
43,787,956 ordinary shares of 0.1p) and the following figures:
Unaudited Unaudited Audited
6 months 6 months year to
to 30 to 30 31
June 2017 June 2016 December
2016
Loss attributable to equity shareholders £'000 (81) (161) (211)
Loss per ordinary share (0.07)p (0.32)p (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 Unaudited 6 Audited year
months to months to to 31
30 June 30 June December
2017 2016 2016
£'000 £'000 £'000
Segment result
Investment activities:
Administrative expenses (108) (34) (106)
(108) (34) (106)
Rental activities:
Rental income 66 60 118
Administrative expenses (1) (1) (4)
Fair value adjustment on investment property - - -
65 59 114
Operating (loss)/profit (43) 25 8
Finance Income - - (11)
Finance costs (38) (193) (208)
Fair value adjustment on interest rate swap - 7 -
Loss before tax (81) (161) (211)
Unaudited as at Unaudited as at Audited
30 June 2017 30 June 2016 as at 31
December
2016
£'000 £'000 £'000
Segment assets
Investment activities:
Non-current assets - - -
Current assets 595 45 -
595 45 -
Rental:
Non - current assets - investment property 2,844 2,844 2,844
Current assets - other 9 15 1,192
2,853 2,859 4,036
Mezzanine funding arrangement:
Current assets - 654 553
- 654 553
Total assets 3,448 3,558 4,589
Segment liabilities
Investment activities:
Current liabilities 170 791 749
170 791 749
Rental:
Current liabilities 321
158 946
Non-current liabilities 1,288
1,232 1,316
1,609
1,390 2,262
Other:
Current liabilities - accrued interest - 357
-
Current liabilities - corporation tax - -
84
Current liabilities - deferred tax on fair value 126
adjustment - 165
165 483
84
Total liabilities 1,644 3,218 2,841
Total assets less total liabilities 1,804 340 1,748
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. Investment property
Investment
Property
£'000
Cost or fair value
At 1 July 2016 2,844
Fair value adjustment -
At 31 December 2016 2,844
Fair value adjustment -
At 30 June 2017 2,844
Energiser Investments : Half-year Report
September 28, 2017 at 07:34 am EDT
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