Share Name Share Symbol Market Type Share ISIN Share Description
Adams Plc LSE:ADA London Ordinary Share IM00B986V543 ORD GBP0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 4.25p 3.50p 5.00p 4.25p 4.25p 4.25p 0 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 0.0 0.2 0.3 15.2 2.00

Adams PLC Half-year Report

27/11/2018 7:00am

UK Regulatory (RNS & others)


Adams (LSE:ADA)
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TIDMADA

RNS Number : 5334I

Adams PLC

27 November 2018

Adams plc

("Adams" or the "Company")

Interim Results for the Six Months ended 30 September 2018

Adams (AIM: ADA) delivered a profit after tax of GBP517,000 in the six months ended 30 September 2018 compared to a loss of GBP51,000 in the half year to 30 September 2017. The increase in profitability is principally due to investment returns being higher by GBP572,000.

The presentational currency of Adams was changed from Euros to Pounds Sterling during the year to 31 March 2018. In accordance with accounting standards, the comparative financial information for the half year ended 30 September 2017 as previously reported in Euros, has been presented in Pounds Sterling using the procedures outlined in note 4.2 to the condensed financial statements.

During the six months ended 30 September 2018, the Company remained almost fully invested and did not make any new investments or make any investment disposal realisations.

Adams held 6 investments at 30 September 2018, of which 3 were listed and 3 were un-listed, and for which the total investment carrying value was GBP2.62 million (31 March 2018: GBP2.08 million, represented by 3 listed and 3 un-listed investment holdings).

The Company held cash balances of GBP30,000 at 30 September 2018, compared to cash balances of GBP52,000 at the previous 31 March 2018 year end. Net assets attributable to shareholders of Adams at 30 September 2018 were GBP2.63 million (equivalent to 3.18 pence per share) versus GBP2.11 million (equivalent to 2.55 pence per share) at 31 March 2018.

Business model and investing policy

Adams is an investing company with an investing policy under which the Board is seeking to acquire interests in special situation investment opportunities that have an element of distress, dislocation, dysfunction or other special situation attributes and that the Board perceives to be undervalued. The principal focus is in the small to middle-market capitalisation sectors in the UK or Europe, but the directors will also consider possible special situation opportunities anywhere in the world if they believe there is an opportunity to generate added value for shareholders.

Investment Portfolio

The listed investments held by the Company at 30 September 2018 comprise Petrofac Limited, Eland Oil & Gas Plc and Communisis Plc. In addition, the Company held shares and loan notes in unquoted Sherwood Holdings Limited (which owns Source Bioscience Ltd as its principal subsidiary asset) and unquoted shares in both Abaco Capital Plc and Oxford Pharmascience Limited.

Petrofac is a multinational service provider to the oil and gas production and processing industry. The company designs, builds, operates and maintains oil and gas facilities with a focus on delivering first class project execution, cost control and effective risk management. Petrofac has a 36-year track record and has grown significantly to become a constituent of the FTSE 250 Index. The company has 31 offices and approximately 13,500 staff worldwide, comprising more than 80 nationalities.

Eland is an independent oil and gas company with principal interests in the prolific Niger Delta. During 2018 to date, average gross production increased to around 30,000 barrels of oil per day and is expected to continue to increase further in the near-term.

Communisis is a leading provider of outsourced digital asset management and personalised customer communication services. On 23 October 2018, Bidco Ltd, a wholly-owned indirect subsidiary of OSG Group Holdings Inc., made a recommended 71 pence per share cash offer for the entire share capital of Communisis. It is proposed that the cash acquisition be implemented by means of a court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act, which requires the approval of Communisis shareholders at a court meeting and general meeting and the sanction of the court. If approved, the acquisition is expected to complete in December 2018 and would generate cash proceeds of GBP143,000 for Adams on disposal of its investment holding in Communisis.

Abaco Capital (formerly Oxford Pharmascience Plc) underwent a demerger of its Oxford Pharmascience Limited business in December 2017 and cancelled its AIM listing in May 2018. The company subsequently undertook a members' voluntary liquidation and a distribution of funds back to shareholders under which Adams received a GBP30,000 payment in October 2018. As a result and subsequent to Adams's 30 September 2018 half year end, the Company no longer has an investment holding in Abaco Capital.

Oxford Pharmascience (as demerged from Abaco Capital) is a drug development company that re-develops approved drugs to make them better, safer and easier to take and it has a current focus to develop improved formulations of non-steroidal anti-inflammatory drugs (NSAIDs) and statins. Subsequent to Adams's 30 September 2018 half year end, the Company sold its small investment holding in Oxford Pharmascience for GBP3,000.

Source Bioscience is an international provider of state of the art laboratory services and products and has an expertise in clinical diagnostics, genomics, proteomics, drug discovery & development research and analytical testing services.

Outlook

There is continued reason for investment caution in the near term, given the many threats to a sustained global recovery, including a trade war between the US and China, rising US interest rates, the tightening of global monetary conditions and ongoing Brexit uncertainties.

Weak equity markets in the current December quarter period to date have adversely impacted the value of our investment holdings and reversed some of the investment gains reported in the six months ended 30 September 2018. We remain committed, however, to delivering additional value for our shareholders and will continue to maintain a rigorous and highly selective investment approach with a view to exploiting opportunities as they emerge. We are confident that this approach will enable us to build considerable value for shareholders going forward.

Michael Bretherton

Chairman

27 November 2018

Enquiries:

 
Adams plc 
Mike Bretherton                       Tel: +44 1534 719 761 
 
Nomad 
Cairn Financial Advisers LLP 
Sandy Jamieson, James Caithie         Tel: +44 207 213 0880 
 
Broker 
Peterhouse Corporate Finance Limited 
Lucy Williams, Duncan Vasey           Tel: +44 207 469 0930 
 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD TO 30 SEPTEMBER 2018

 
                                             6 months   Year ended       6 months 
                                                ended       31 Mar          ended 
                                          30 Sep 2018         2018    30 Sep 2017 
                                 Note     (Unaudited)    (Audited)    (Unaudited) 
                                              GBP'000      GBP'000        GBP'000 
 Gain on investments              5               541          280             13 
 Dividend income                                   57           45             13 
                                       --------------  -----------  ------------- 
 Investment return                                598          325             26 
 
 Expenses 
 
 Administrative expenses                         (86)        (155)           (82) 
 Operating profit/(loss)                          512          170           (56) 
 
 Interest income                                    5           10              5 
 
 Profit/(loss) on ordinary 
  activities before taxation                      517          180           (51) 
 
 Tax on profit/(loss) on 
  ordinary activities                               -            -              - 
 
 Profit/(loss) for the 
  period                                          517          180           (51) 
                                       --------------  -----------  ------------- 
 
 Total comprehensive income/(loss) 
  for the period                                  517          180           (51) 
 
 
 Earnings/(loss) per ordinary 
  share 
 Basic and diluted                10            0.63p        0.25p        (0.08)p 
                                       --------------  -----------  ------------- 
 

There are no other items of comprehensive income/(loss).

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2018

 
                                               As at 
                                              30 Sep          As at          As at 
                                                2018    31 Mar 2018    30 Sep 2017 
                                         (Unaudited)      (Audited)    (Unaudited) 
                                  Note       GBP'000        GBP'000        GBP'000 
 Assets 
 Non-current assets 
 Investments                       6           2,622          2,076          1,822 
 
 Current assets 
 Trade and other receivables       7               6              2              1 
 Cash and cash equivalents                        30             52             78 
                                        ------------  -------------  ------------- 
 Current assets                                   36             54             79 
                                        ------------  -------------  ------------- 
 
 Total assets                                  2,658          2,130          1,901 
                                        ------------  -------------  ------------- 
 
 Liabilities 
 Current liabilities 
 Trade and other payables          8            (32)           (21)           (23) 
                                        ------------  -------------  ------------- 
 Total liabilities                              (32)           (21)           (23) 
                                        ------------  -------------  ------------- 
 
 Net current assets                                4             33             56 
                                        ------------  -------------  ------------- 
 
 Net assets                                    2,626          2,109          1,878 
                                        ============  =============  ============= 
 
 Equity 
 Called up share capital           9             826          1,001          1,001 
 Share premium                     9               -          1,401          1,401 
 Accumulated gains/(losses)                    1,800           (49)          (280) 
  Foreign currency translation 
   reserve                                         -          (244)          (244) 
                                        ------------  -------------  ------------- 
 Total shareholder equity                      2,626          2,109          1,878 
                                        ============  =============  ============= 
 
 

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIOD TO 30 SEPTEMBER 2018

 
                                                                Foreign 
                                                               currency 
                                        Share      Share    translation       Accumulated 
                                      Capital    Premium        reserve    gains/(losses)     Total 
                                      GBP'000    GBP'000        GBP'000           GBP'000   GBP'000 
 
 At 31 March 2017 (audited)               636        783          (244)             (229)       946 
                                    ---------  ---------  -------------  ----------------  -------- 
 
 Issue of shares                          365        618              -                 -       983 
 Total comprehensive loss 
  for period                                -          -              -              (51)      (51) 
 
 At 30 September 2017 (unaudited)       1,001      1,401          (244)             (280)     1,878 
                                    ---------  ---------  -------------  ----------------  -------- 
 
 Total comprehensive gain 
  for period                                -          -              -               231       231 
 
 At 31 March 2018 (audited)             1,001      1,401          (244)              (49)     2,109 
                                    ---------  ---------  -------------  ----------------  -------- 
 
 Total comprehensive gain 
  for period                                -          -              -               517       517 
 Redenomination of share 
  capital                               (175)        175              -                 -         - 
 Elimination of foreign currency 
  reserve                                   -      (244)            244                 -         - 
 Reclassification of share 
  premium                                   -    (1,332)              -             1,332         - 
 
 At 30 September 2018 (unaudited)         826          -              -             1,800     2,626 
                                    ---------  ---------  -------------  ----------------  -------- 
 

STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIOD TO 30 SEPTEMBER 2018

 
 
                                                6 months           Year       6 months 
                                                   ended          ended          ended 
                                             30 Sep 2018    31 Mar 2018    30 Sep 2017 
                                             (Unaudited)      (Audited)    (Unaudited) 
                                                 GBP'000        GBP'000        GBP'000 
 
 Profit/(loss) for the period                        517            180           (51) 
 Unrealised gain on revaluation 
  of investments                                   (541)          (237)           (14) 
 Realised (gain)/loss on disposal 
  of investments                                       -           (43)              1 
 (Increase)/decrease in trade and 
  other receivables                                  (4)              -              1 
 Increase/(decrease) in trade and 
  other payables                                      11            (5)            (3) 
 
 Net cash outflows from operating 
  activities                                        (17)          (105)           (66) 
                                          --------------  -------------  ------------- 
 
 Cash flows from investing activities 
 Proceeds from sales of investments                    -            730             72 
 Purchase of investments                             (5)        (1,591)          (946) 
 
 Net cash used in investing activities               (5)          (861)          (874) 
                                          --------------  -------------  ------------- 
 
 Cash flows from financing activities 
 
 Issue of ordinary share capital                       -            983            983 
 
 Net cash generated from financing 
  activities                                           -            983            983 
                                          --------------  -------------  ------------- 
 
 Net (decrease)/increase in cash 
  and cash equivalents                              (22)             17             43 
 
 Cash and cash equivalents at beginning 
  of period                                           52             35             35 
 
 Cash and cash equivalents at end 
  of period                                           30             52             78 
                                          ==============  =============  ============= 
 
 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD TO 30 SEPTEMBER 2018

The accounting policies and explanatory notes set out below from an integral part of the financial statements.

   1              General information 

Adams Plc is a company incorporated in the Isle of Man and is listed on the AIM market of the London Stock Exchange.

   2              Basis of preparation 

The interim financial statements of Adams Plc are unaudited condensed financial statements for the six months ended 30 September 2018. These include unaudited comparatives for the six months ended 30 September 2017 together with audited comparatives for the year ended 31 March 2018.

These interim condensed financial statements have been prepared on the basis of the accounting policies expected to apply for the financial year to 31 March 2019 which are based on the recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The financial statements have been prepared under the historical cost convention. The Company's presentation and functional currency is GBP Pounds Sterling.

The interim financial statements do not include all of the information required for full annual financial statements and do not comply with all the disclosures in IAS 34 'Interim Financial Reporting', and should be read in conjunction with the Company's annual financial statements to 31 March 2018. Accordingly, whilst the interim statements have been prepared in accordance with IFRS, they cannot be construed as being in full compliance with IFRS.

The preparation of financial statements in conformity with IFRS as adopted by the EU requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.

   3              Going concern 

Information on the business environment, financial position and the factors underpinning the Company's future prospects and portfolio are included in the Chairman's Statement. The Directors confirm that they are satisfied that the Company has adequate financial resources to continue in business for the medium term based on the current liquid resources available. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

   4              Significant accounting policies 

The accounting policies adopted are consistent with those followed in the preparation of the annual financial statements of Adams Plc for the year ended 31 March 2018 which received an unqualified audit opinion. A copy of these financial statements is available on the Company website at www.adamsplc.co.uk.

   4.1          Changes in significant accounting policies 

The accounting policies adopted are consistent with those of the previous financial year except for a change in the reporting currency of the Company to GBP, as described in the annual financial statements of Adams Plc for the year ended 31 March 2018.

The change in reporting currency is a change in accounting policy and has been accounted for retrospectively in line with IAS 8. New standards and amendments to IFRS effective as for the financial reporting period have been reviewed by the Company and there has been no material impact on the financial statements as a result of these standards and amendments. The Company has not early adopted any amendment, standard or interpretation that has been issued but is not yet effective.

   4.2       Functional and presentational currency 

The presentational currency of the Company was changed during the year ended 31 March 2018 from EUR (EUR) to GBP (GBP). This change in the reporting currency of the Company was made with effect from 1 April 2017 to reflect the fact that the Company no longer had Euro based operations, assets or significant transactions denominated in Euros.

The functional currency of the Company continues to be that of the primary economic environment in which the Company operates which is 'Pounds Sterling' (GBP). This is the currency in which expenses are incurred, salaries are paid, income is received, and equity funds are raised.

A change in presentational currency is classified as a change in accounting policy which is accounted for retrospectively. In accordance with accounting standards the statutory financial information included in the Company's annual report for the year ended 31 March 2017 previously reported in EUR was restated into GBP using the procedures outlined below:

-- assets and liabilities denominated in non-sterling currencies were translated into sterling at closing rates of exchange. Non-sterling trading results were translated into sterling at average rates of exchange;

-- Share Capital, share premium and other reserves were translated at the historic rates prevalent at the dates of transactions;

   --     all exchange rates used were extracted from the Company's underlying financial records; and 

-- foreign exchange translation differences resulting from the above retranslations were taken to a Foreign Exchange Translation Reserve.

The exchange rate applied to restate the 31 March 2017 balance sheet figures was EUR1.17775 per GBP1 sterling. The average exchange rate used to restate the result for the year to 31 March 2017 was EUR1.13139.

Given the functional currency of the Company continues to be GBP with effect from 1 April 2017, the comparable 6 months trading results to 30 September 2017 and the balance sheet figures at that date have now simply been presented in GBP without being retranslated into Euros as previously reported.

   5   Segment reporting 

Operating segments for Adams Plc are reported based on the financial information provided to the Board, which is used to make strategic decisions. The Directors are of the opinion that under IFRS 8 'Operating segments' the Company has only one reportable segment, being Investment Return. The Board assesses the performance of the operating segment based on financial information which is measured and presented in a manner consistent with that in the financial statements.

The principal sources of revenue for the Company in the period to 30 September 2018 were as follows:

 
                                                             6 months                                  6 months 
                                                             ended 30           Year ended             ended 30 
                                                             Sep 2018          31 Mar 2018             Sep 2017 
                                                              GBP'000              GBP'000              GBP'000 
            Unrealised gain on investments                        541                  237                   14 
            Realised gain/(loss) on investments                     -                   43                  (1) 
                                                  -------------------  -------------------  ------------------- 
            Total gain on investments                             541                  280                   13 
                                                  ===================  ===================  =================== 
 
   6        Investments 

An analysis of movements in the value of the Company's investments is as follows:

 
                                     Quoted   Unquoted 
                                     Equity     Equity      Unquoted 
                                     Shares     Shares    Loan Notes     Total 
                                    GBP'000    GBP'000       GBP'000   GBP'000 
 Fair value at 31 March 2017            837          5            93       935 
 Additions at cost                      941          -             5       946 
 Disposals                             (73)          -             -      (73) 
 Unrealised revaluation gains            14          -             -        14 
                                   --------  ---------  ------------  -------- 
 Fair value at 30 September 2017      1,719          5            98     1,822 
 Additions at cost                      640          -             5       645 
 Disposals                            (614)          -             -     (614) 
 Unrealised revaluation gains           223          -             -       223 
                                   --------  ---------  ------------  -------- 
 Fair value at 31 March 2018          1,968          5           103     2,076 
 Additions at cost                        -          -             5         5 
 Unrealised revaluation gains           541          -             -       541 
                                   --------  ---------  ------------  -------- 
 Fair value at 30 September 2018      2,509          5           108     2,622 
                                   ========  =========  ============  ======== 
 
   7       Trade and other receivables 
 
                             As at                As at                As at 
                       30 Sep 2018          31 Mar 2018          30 Sep 2017 
                           GBP'000              GBP'000              GBP'000 
 Prepayments                     6                    2                    1 
               -------------------  -------------------  ------------------- 
                                 6                    2                    1 
               ===================  ===================  =================== 
 

The carrying amount of trade and other receivables approximates to their fair value.

   8       Trade and other payables 
 
                                        As at                As at                As at 
                                  30 Sep 2018          31 Mar 2018          30 Sep 2017 
                                      GBP'000              GBP'000              GBP'000 
 Trade payables                            13                    8                   13 
 Accruals and other creditors              19                   13                   10 
                                           32                   21                   23 
                                =============  ===================  =================== 
 

The carrying amount of trade and other payables approximates to their fair value.

   9       Share capital and share premium 
 
                                         Number of 
                                     shares issued      Share      Share 
                                         and fully    capital    premium 
 Ordinary shares                           paid up    GBP'000    GBP'000 
 
 At 1 April 2017                        41,276,616        636        783 
                                   ---------------  ---------  --------- 
 
 Issue of shares                        41,276,616        365        618 
 
 At 30 September 2017                   82,553,232      1,001      1,401 
                                   ---------------  ---------  --------- 
 
 Issue of shares                                 -          -          - 
 
 At 31 March 2018                       82,553,232      1,001      1,401 
                                   ---------------  ---------  --------- 
 
 Redenomination of share capital                 -      (175)        175 
 Elimination of foreign currency 
  reserve                                        -          -      (244) 
 Reclassification of share 
  premium                                        -          -    (1,332) 
 
 At 30 September 2018                   82,553,232        826          - 
                                   ---------------  ---------  --------- 
 

On 10 August 2018, a special resolution was passed authorising the par value of the Company's Ordinary Shares to be redenominated from EUR0.01 to GBP0.01. On that same date, resolutions were also passed that GBP244,000 of share premium be cancelled and applied to eliminate the Foreign Currency Translation Reserve and that the remaining balance on the Company's share premium account be reclassified as distributable reserves.

The authorised Ordinary share capital of the Company at 30 September 2018 is 350,000,000 Ordinary Shares of GBP0.01 each (31 March 2018 and 30 September 2017: 350,000,000 Ordinary Shares of EUR0.01 each).

   10     Earnings/(loss) per share 

The basic earnings/(loss) per share is calculated by dividing the profit/(loss) after tax attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period:

 
 
                                              6 months           Year       6 months 
                                                 ended          ended          ended 
                                           30 Sep 2018    31 Mar 2018    30 Sep 2017 
 
 Profit/(loss) after tax attributable 
  to equity holders of the Company 
  (GBP'000)                                        517            180           (51) 
 
 Weighted average number of ordinary 
  shares                                    82,553,232     72,481,267     62,478,812 
 
 Basic and diluted earnings/(loss) 
  per share                                      0.63p          0.25p        (0.08)p 
 

There were no potentially dilutive shares in issue as at 30 September 2018, 31 March 2018 and 30 September 2017.

   11     Events after reporting date 

There were no significant events requiring disclosure after the reporting date.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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