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ENGI Energiser Investments Plc

0.65
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Energiser Investments Plc LSE:ENGI London Ordinary Share GB00B06CZD75 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.65 0.60 0.70 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Energiser Investments PLC Final Results (4775G)

30/05/2017 7:02am

UK Regulatory


Energiser Investments (LSE:ENGI)
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TIDMENGI

RNS Number : 4775G

Energiser Investments PLC

30 May 2017

ENERGISER INVESTMENTS PLC

FINAL RESULTS FOR THE YEARED 31 DECEMBER 2016

CHAIRMAN'S STATEMENT

Introduction

I am delighted to report on the Group's performance for the year ended 31 December 2016.

As part of our strategy to focus on the property sector, in October 2016 Dominic White moved from his role as Non-Executive Director to Chief Executive. Dominic has an extensive background in the real estate sector and capital markets.

During the year we maintained greater than 95% occupancy at the Wellingborough investment portfolio, saw the majority of the development loan repaid at the Kingswood, Surrey development, made great progress on the sourcing, analysis and negotiation of a number of potential transactions and raised new equity.

Results

The gross rental income from the Wellingborough investment portfolio of 20 residential properties increased to GBP160,000 (2015: GBP154,000), an uplift of 3.9% over the previous year. The net rental income, after relevant operating costs, was GBP118,000 (2015: GBP120,000). Administrative costs were GBP110,000 (2015: GBP50,000) due to the appointment of Dominic White and the resulting increase in activity. Finance costs fell to GBP208,000 (2015: GBP358,000) due to lower interest payments following the repayment of the funding for the development at Kingswood, Surrey. The loss before and after taxation was GBP211,000 (2015: GBP167,000) with a loss per share of 0.40p (2015: 0.38p).

Net assets have increased significantly to GBP1,748,000 (2015: GBP419,000) primarily due to the new equity issue in December 2016 which raised GBP1,255,000 gross of issue expenses. This results in a net asset value per share of 1.41p (2015: 0.96p). Net asset value per share is calculated by dividing the net assets of the Group by the number of ordinary shares in existence at the balance sheet date.

Operations

The 20 properties in Wellingborough are currently let and will continue to be let on short-term tenancies. The Directors have decided that following successful asset management activity, rents and values have increased such that it is timely to consider a disposal. The assets will be marketed for sale in 2017.

Our investment in the development funding of 12 residential properties in Kingswood, Surrey has now been repaid. At the year end 11 of the 12 units had been sold. The last unit was sold in April 2017 and all payments have now been received.

We successfully raised GBP1,255,000 in December 2016, ahead of our target.

The Group has continued to fully provide against its investment in EiRx Therapeutics plc, which was placed in creditors' voluntary liquidation in 2015.

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 is on three areas - serviced-residential, self-storage and short term property lending. The over-riding theme is technology led real estate operations to deliver efficiency, scalability and transparency. We are negotiating specific opportunities in the serviced apartment and self-storage sectors and are reviewing a number of secured lending investments through our property lending subsidiary.

We look forward to sharing full details of the next Energiser investment with shareholders in 2017.

Stephen Wicks

26 May 2017

Group strategic report

for the year ended 31 December 2016

The Directors present their Strategic Report on the Group for the year ended 31 December 2016.

Review of the business

The Company is registered as a Public Limited Company (plc). The Company's shares of 0.1p each are listed on AIM, part of the London Stock Exchange.

The Group invests in quoted and unquoted companies to achieve capital growth. The Group also holds investment properties whereby the properties are held with rental income arising from short-term lets. It also provides mezzanine finance to housebuilders.

Results and performance

The results of the Group for the year show a loss on ordinary activities before and after taxation of GBP211,000 (2015: GBP167,000). The shareholders' funds for the Group total GBP1,748,000 (2015: GBP419,000).

The performance of the rental investment during 2016 was similar to that of 2015, with greater than 95% occupancy on the rental properties. The Group had provided GBPnil funding for the development of 12 residential units in Surrey and is entitled to receive 50% of the net profit of the development, including a priority return of GBP785,000, subject to the development making sufficient profit. Since the year end, the sale of the final unit has legally completed and the Group's share of profit and cash has been received.

Business environment

The property market around Wellingborough has not seen any price inflation and therefore no uplift was recognised in the value of the investment properties.

Strategy

Energiser's strategy as an Investing Company is to invest, directly or indirectly, in quoted and unquoted companies and in the property sector to achieve capital growth in the medium term.

The Group continues to let the Wellingborough properties on short-term tenancies.

Key performance indicators ('KPIs')

The Group's KPIs are the return on project investment and the net assets position of the Group including net assets per share. These indicators are monitored by the Board and the details of performance against these are given below.

 
                                        2016        2015 
------------------------------  ------------  ---------- 
Return on project investment      GBP118,000  GBP120,000 
Net assets                      GBP1,748,000  GBP419,000 
Net assets per ordinary share          1.41p       0.96p 
------------------------------  ------------  ---------- 
 

Principal risks and uncertainties

The management of the business and the nature of the Group's strategy are subject to a number of risks. The Directors have set out below the principal risks facing the business. Where possible, processes are in place to monitor and mitigate such risks. The Group operates a system of internal control and risk management in order to provide assurance that the Board is managing risk whilst achieving its business objectives. No system can fully eliminate risk and, therefore, the understanding of operational risk is central to the management process.

To enable shareholders to appreciate what the business considers are the main operational risks, they are briefly outlined below:

 
                        Potential 
          Risk           impact                Strategy 
--------  ------------  ---------------------  -------------------- 
Housing   A fall        Inability              The Group 
 market    in the        to realise             seeks to 
           housing       maximum value          ensure that 
           market        in a timely            funding 
           in the        fashion                provided 
           regions       Adverse effect         to housebuilders 
           in            on the timing          is for developments 
           which         of sales               in areas 
           the                                  that are 
           Group                                likely to 
           operates                             be least 
                                                affected 
                                                by a decline 
                                                in the housing 
                                                market 
--------  ------------  ---------------------  -------------------- 
Rental    A decrease    Detrimental            The Group 
 market    in demand     effect on              seeks to 
           for           the Group's            ensure that 
           rental        ability to             tenants 
           properties    cover administration   are satisfied 
                         and debt               with their 
                         servicing              property 
                         costs                  to encourage 
                                                tenancy 
                                                renewals 
                                                and employs 
                                                a reputable 
                                                manager 
                                                to deal 
                                                with any 
                                                issues and 
                                                to let the 
                                                properties 
--------  ------------  ---------------------  -------------------- 
Interest  Significant   Increased              The Group 
 rates     upward        borrowing              mitigates 
           changes       costs and              any adverse 
           in interest   a detrimental          exposure 
           rates         effect on              to interest 
                         profit                 rate changes 
                                                by controlling 
                                                its gearing 
--------  ------------  ---------------------  -------------------- 
 

Future developments

We have now realised the profit share related to the mezzanine funding provided to a housebuilder for the 12 unit development in Kingswood Park, Surrey. The Group will continue to focus on direct investment in the equity and debt capital of property assets. It will also look to increase its exposure to property by investing in property operating companies such as serviced-residential, serviced-storage or serviced-leisure that combine an interest in a property portfolio with an overriding operating business.

The Group intends to dispose of the Wellingborough properties in the near future.

By order of the Board

Nishith Malde

Company Secretary

26 May 2017

Group statement of comprehensive income

for the year ended 31 December 2016

 
                                                      2016      2015 
                                                   GBP'000   GBP'000 
-----------------------------------------------   --------  -------- 
Continuing operations 
Revenue arising in the course of ordinary 
 activities                                            160       154 
Cost of sales                                         (42)      (34) 
------------------------------------------------  --------  -------- 
Gross profit                                           118       120 
Administrative expenses                              (110)      (50) 
Revaluation of investment properties                     -       102 
------------------------------------------------  --------  -------- 
Operating profit                                         8       172 
Finance costs                                        (208)     (358) 
Finance income                                        (11)        19 
------------------------------------------------  --------  -------- 
Loss before taxation                                 (211)     (167) 
Taxation                                                 -         - 
Loss for the year attributable to shareholders 
 of the Group                                        (211)     (167) 
------------------------------------------------  --------  -------- 
Other comprehensive income/(loss) 
Items that may be subsequently reclassified 
 to profit or loss 
Change in value of available-for-sale 
 financial assets                                      (5)      (16) 
Related deferred taxation                               14         4 
------------------------------------------------  --------  -------- 
Other comprehensive income/(loss) for 
 the year, net of tax                                    9      (12) 
------------------------------------------------  --------  -------- 
Total comprehensive loss for the year 
 attributable to shareholders of the 
 Group                                               (202)     (179) 
------------------------------------------------  --------  -------- 
Loss per share 
Basic and diluted loss per share from 
 total and continuing operations                   (0.40)p   (0.38)p 
------------------------------------------------  --------  -------- 
 

Diluted loss per share is taken as equal to the basic loss per share as the Company's average share price during the period is lower than the exercise price of the share options and therefore the effect of including share options is anti-dilutive.

Group statement of financial position

as at 31 December 2016

 
                                           2016      2015 
                                        GBP'000   GBP'000 
------------------------------------   --------  -------- 
ASSETS 
Non-current assets 
Investment property                       2,844     2,844 
                                          2,844     2,844 
 ------------------------------------  --------  -------- 
Current assets 
Trade and other receivables                  72        38 
Available-for-sale financial assets         553     3,977 
Cash and cash equivalents                 1,120       218 
-------------------------------------  --------  -------- 
                                          1,745     4,233 
 ------------------------------------  --------  -------- 
Total assets                              4,589     7,077 
-------------------------------------  --------  -------- 
LIABILITIES 
Current liabilities 
Trade and other payables                    733       866 
Short-term borrowings                       694     4,318 
Deferred tax                                126       140 
-------------------------------------  --------  -------- 
                                          1,553     5,324 
 ------------------------------------  --------  -------- 
Non-current liabilities 
Long-term borrowings                      1,288     1,334 
                                          1,288     1,334 
 ------------------------------------  --------  -------- 
Total liabilities                         2,841     6,658 
-------------------------------------  --------  -------- 
Net assets                                1,748       419 
-------------------------------------  --------  -------- 
EQUITY 
Share capital                             2,392     2,312 
Share premium account                     7,198     5,747 
Convertible loan                             88        88 
Merger reserve                            1,012     1,012 
Revaluation reserve                         537       528 
Retained earnings                       (9,479)   (9,268) 
-------------------------------------  --------  -------- 
Total equity                              1,748       419 
-------------------------------------  --------  -------- 
 

Group statement of changes in equity

for the year ended 31 December 2016

 
                                      Share 
                            Share   premium  Convertible    Merger  Revaluation   Retained     Total 
                          capital   account         loan   reserve      reserve   earnings    equity 
                          GBP'000   GBP'000      GBP'000   GBP'000      GBP'000    GBP'000   GBP'000 
-----------------------  --------  --------  -----------  --------  -----------  ---------  -------- 
At 1 January 2015           2,312     5,747           88     1,012          540    (9,101)       598 
Total comprehensive 
 loss                           -         -            -         -         (12)      (167)     (179) 
-----------------------  --------  --------  -----------  --------  -----------  ---------  -------- 
Balance at 31 December 
 2015                       2,312     5,747           88     1,012          528    (9,268)       419 
-----------------------  --------  --------  -----------  --------  -----------  ---------  -------- 
Total comprehensive 
 loss                           -         -            -         -            9      (211)     (202) 
Issue of equity                80     1,451            -         -            -          -     1,531 
-----------------------  --------  --------  -----------  --------  -----------  ---------  -------- 
Balance at 31 December 
 2016                       2,392     7,198           88     1,012          537    (9,479)     1,748 
-----------------------  --------  --------  -----------  --------  -----------  ---------  -------- 
 

Group statement of cash flows

for the year ended 31 December 2016

 
                                                                 2016                 2015 
                                                              GBP'000              GBP'000 
---------------------------------------------------  ----------------  ------------------- 
Cash flows from operating activities 
Loss before and after taxation                                  (211)                (167) 
Adjustments for: 
    Fair value adjustment on financial liabilities 
     recognised in profit or loss                                   -                  (8) 
    Fair value adjustment on investment property                    -                (102) 
    Interest expense                                              208                  358 
   Interest income                                                 11                 (11) 
    Increase in trade and other receivables                      (33)                 (13) 
    (Decrease)/increase in trade payables                       (127)                   35 
Net cash (used in)/generated by operating 
 activities                                                     (152)                   92 
---------------------------------------------------  ----------------  ------------------- 
Cash flows from investing activities 
Mezzanine finance facility repaid                               3,408                    - 
Mezzanine finance facility issued                                   -                (650) 
---------------------------------------------------  ----------------  ------------------- 
Net cash generated by/(used in) investing 
 activities                                                     3,408                (650) 
---------------------------------------------------  ----------------  ------------------- 
Cash flows from financing activities 
Proceeds from borrowings                                            -                2,064 
Net proceeds on the issue of ordinary shares                    1,530                    - 
Repayment of borrowings                                       (3,670)              (1,206) 
Interest paid                                                   (214)                 (95) 
---------------------------------------------------  ----------------  ------------------- 
Net cash (used in)/generated by financing 
 activities                                                   (2,354)                  763 
---------------------------------------------------  ----------------  ------------------- 
Net increase in cash and cash equivalents                         902                  205 
Cash and cash equivalents at beginning of 
 financial year                                                   218                   13 
---------------------------------------------------  ----------------  ------------------- 
Cash and cash equivalents at end of financial 
 year                                                           1,120                  218 
---------------------------------------------------  ----------------  ------------------- 
 

Note:

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2016 or 2015 but is derived from those accounts. Statutory accounts for 2015 have been delivered to the registrar of companies, and those for 2016 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2016 or 2015.

The AGM will be held at Decimal Place, Chiltern Avenue, Amersham, Buckinghamshire, HP6 5FG at 11.00 am on 30 June 2017.

The Company's Annual Report and Accounts along with the Notice of Annual General Meeting will be posted to shareholders shortly and will be available to view and download on the Company's website at www.energiserinvestments.co.uk.

For further information contact:

Energiser Investments plc

   Dominic White                           +44 (0) 1494 762450 
   Nishith Malde                             +44 (0) 1494 762450 

Cairn Financial Advisers LLP

   Jo Turner/Sandy Jamieson     +44 (0) 20 7213 0880 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

May 30, 2017 02:02 ET (06:02 GMT)

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