Share Name Share Symbol Market Type Share ISIN Share Description
Modern Water Plc LSE:MWG London Ordinary Share GB00B1XF5X66 ORD 0.25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1.25 1.20 1.30 1.25 1.25 1.25 99,017 07:33:23
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Gas Water & Utilities 4.2 -2.5 -2.2 - 2

Modern Water PLC Half-year Report

30/09/2019 7:00am

UK Regulatory (RNS & others)


Modern Water (LSE:MWG)
Historical Stock Chart

3 Months : From Sep 2019 to Dec 2019

Click Here for more Modern Water Charts.

TIDMMWG

RNS Number : 0174O

Modern Water PLC

30 September 2019

30 September 2019

Modern Water plc ("Modern Water" or "the Company")

INTERIM RESULTS

Modern Water (AIM:MWG), the owner of leading technologies for water and wastewater treatment and the monitoring of water quality, announces

half-year results for the 6 months ended 30 June 2019

Commenting on the results, Dr Piers Clark, Chairman of Modern Water, said:

"The first six months of 2019 have been difficult for the Company: on the positive side Modern Water's excellent innovative all-membrane brine concentration technology was again proven by the sale of a full-sized plant to one of the world's leading chemicals companies; and the Monitoring Division's sales increased significantly. On the negative side, sales especially in the Membranes Division were not developing fast enough, leading to the insolvency of two of the Group's subsidiaries. The Board is working on selling the Monitoring Division and on re-structuring the Membranes Division to ensure that its valuable technologies can be commercialised more rapidly."

-ends-

For further information:

 
 Modern Water plc                            +44 (0) 1483 696 000 
 Simon Humphrey, Chief Executive 
 
 Cairn Financial Advisers LLP (Nominated 
  Adviser)                                   +44 (0) 207 213 0880 
 Sandy Jamieson / Tony Rawlinson 
  Ludovico Lazzaretti 
 
  Turner Pope Investments Ltd (Broker)       +44 (0) 203 657 0050 
 Andy Thacker 
 
 

Joint Statement of the Chairman and the Chief Executive

The first six months of 2019 brought mixed fortunes: on the one hand, Modern Water sold an AMBC plant to one of the world's leading producers of crop protection products, speciality chemicals and other industrial chemicals, following successful trials of Modern Water's AMBC by the company at a site in India. The order proved that Modern Water's AMBC technology is able to treat technically challenging waste-water for a competitive price and in an energy-efficient manner.

On the other hand, however, the Company's commercialisation of its innovative membrane process technology did not progress fast enough and the strong performance from the Monitoring Division was offset by a lower than forecast performance from the Membrane Division.

The Company's hard work on obtaining planning application for the new Effluent Treatment Plant in Gibraltar successfully passed a meeting of Gibraltar's planning authorities, but this proved a false dawn as even now the project has not got off the ground, owing to political delays.

As a consequence of the slow progress in sales by the Membranes Division and the delay of the Gibraltar project - and a failure by the Group to raise sufficient funds - Modern Water announced (post end of the first half of the year) that it would appoint liquidators in relation to two of the Company's subsidiaries, namely Modern Water Services Limited and Cogent Environmental Ltd.

Also post-end of the first half of the year, the Company announced that negotiations for the sale of the assets of Modern Water Inc., the US-based Monitoring Division, had commenced.

Despite these difficulties, Modern Water managed to slightly increase its revenues in the first half of 2019 when compared to the same period in 2018 (2018: GBP1.9m; 2019: GBP2.0m); in addition, the Company slightly reduced its operating loss for the period (2018; GBP1.5m; 2019: GBP1.2m). Loss per shares was 0.91p. Net assets at 30 June 2019 were GBP1.30m, including cash of GBP68k (30 June 2018: GBP2.26m).

In future, Modern Water will devote its management time and effort to its restructured innovative Membrane Processes Division, in which there is an encouraging pipeline of international development projects. The Membrane Processes Division has significant IP and proprietary know-how in the areas of brine concentration and forward osmosis. It has a number of successful project references from working with its partners in China and India. The Division will continue to pursue its preferred business model of licencing its IP for specific projects whilst also providing engineering and design services to its partners.

Since the period end in September 2019, the Company raised GBP141k (before costs) of further funds. Following a review, the directors have concluded that the Company has adequate resources to continue its business for the foreseeable future, as set out in Note 2.2 to the results. The Company continues to carefully manage its working capital position.

   Dr Piers Clark                                                                       Simon Humphrey 

Chairman Chief Executive

27 September 2019

GROUP STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

SIX MONTH PERIODED 30 JUNE 2019

 
                                                  6 months   6 months 
                                                   ended      ended     Year ended 
                                                   30 June    30 June    31 December 
                                                   2019       2018       2018 
                                                   GBP'000    GBP'000        GBP'000 
----------------------------------------------   ---------  ---------  ------------- 
 Revenue                                             2,019      1,894          4,159 
 Cost of Sales                                     (1,005)      (965)        (1,843) 
-----------------------------------------------  ---------  ---------  ------------- 
 Gross profit                                        1,014        929          2,316 
 Administration expenses                           (1,981)    (2,112)        (4,371) 
 Inventory valuation adjustment                          0          0            (3) 
 Operating loss before interest, tax, 
  depreciation & amortisation                        (967)    (1,183)        (2,058) 
 Depreciation and amortisation                       (213)      (301)          (523) 
-----------------------------------------------  ---------  ---------  ------------- 
 Operating loss                                    (1,180)    (1,484)        (2,581) 
 Finance income                                       (95)          3            204 
 Finance costs                                        (44)       (60)           (92) 
-----------------------------------------------  ---------  ---------  ------------- 
 Loss on ordinary activities before 
  taxation                                         (1,319)    (1,541)        (2,469) 
 Taxation                                              (9)        151            163 
-----------------------------------------------  ---------  ---------  ------------- 
 Loss for the period                               (1,328)    (1,390)        (2,306) 
-----------------------------------------------  ---------  ---------  ------------- 
 Other comprehensive income 
 Items may be subsequently reclassified 
  to profit or loss 
 Foreign currency translation differences 
  on foreign operations                                 17      (105)          (504) 
 Total comprehensive loss for the 
  half year                                        (1,311)    (1,495)        (2,810) 
-----------------------------------------------  ---------  ---------  ------------- 
 
 Loss attributable to: 
 Owners of the parent                              (1,328)    (1,390)        (2,170) 
 Non-controlling interests                             (1)          0          (136) 
                                                   (1,329)    (1,390)        (2,306) 
 ----------------------------------------------  ---------  ---------  ------------- 
 
 Total comprehensive loss attributable 
  to: 
 Owners of the parent                              (1,310)    (1,350)        (2,674) 
 Non-controlling interests                             (1)      (145)          (136) 
                                                   (1,311)    (1,495)        (2,810) 
 ----------------------------------------------  ---------  ---------  ------------- 
 
 Loss per share attributable to the 
  equity holders of the parent 
 Basic loss per share                                0.91p      1.46p          2.22p 
 Diluted loss per share                              0.91p      1.46p          2.22p 
 
 The notes form an integral part of this condensed consolidated 
  interim financial information. 
 Items in the statement above are all derived 
  from continuing operations. 
 

GROUP STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT 30 JUNE 2019

 
                                         30 June    30 June   31 December 
                                            2019       2018          2018 
                                         GBP'000    GBP'000       GBP'000 
-------------------------------  ----  ---------  ---------  ------------ 
 Assets 
 Non-current assets 
 Property, plant and equipment               146        219           199 
 Intangible assets                         1,483      1,608         1,563 
                                           1,629      1,827         1,762 
 ------------------------------------  ---------  ---------  ------------ 
 
 Current assets 
 Inventories                                 920      1,109           935 
 Trade and other receivables                 742      1,063         1,014 
 Cash and cash equivalents                    68        127           228 
-------------------------------------  ---------  ---------  ------------ 
                                           1,730      2,299         2,177 
 ------------------------------------  ---------  ---------  ------------ 
 Total assets                              3,359      4,126         3,939 
-------------------------------------  ---------  ---------  ------------ 
 
 Equity and liabilities 
 Equity 
 Ordinary shares                             283        239           261 
 Share premium account                    43,142     41,604        42,613 
 Warrant reserve                             100          0           100 
 Merger reserve                              398        398           398 
  Foreign exchange reserve                 (652)      (262)         (669) 
 Accumulated losses                     (41,970)   (39,715)      (40,642) 
-------------------------------------  ---------  ---------  ------------ 
                                           1,301      2,264         2,061 
 Non-controlling interests                     0          0             9 
-------------------------------------  ---------  ---------  ------------ 
 Total equity                              1,301      2,264         2,070 
-------------------------------------  ---------  ---------  ------------ 
  Liabilities 
 Non-current liabilities 
 Bank Loan                                   524        510           532 
 Deferred tax liabilities                      0         24             0 
-------------------------------------  ---------  ---------  ------------ 
 
 Current liabilities 
 Trade and other payables                  1,534      1,328         1,337 
 Total liabilities                         2,058      1,862         1,869 
-------------------------------------  ---------  ---------  ------------ 
 Total equity and liabilities              3,359      4,126         3,939 
-------------------------------------  ---------  ---------  ------------ 
 

The notes form an integral part of this condensed consolidated interim financial information.

GROUP STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

SIX MONTH PERIODED 30 JUNE 2019

 
 
                   Called 
                     up          Share 
                    share      premium   Warrant    Merger              Retained     Total   Non-controlling     Total 
                                                              Foreign 
                                                             exchange 
                   capital     account   reserve   reserve    reserve   Earnings                   interests    equity 
                   GBP'000     GBP'000   GBP'000   GBP'000    GBP'000    GBP'000   GBP'000           GBP'000   GBP'000 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 
  Six month 
  period ended 
  30 June 2018 
 Balance as at 
  1 January 
  2018                 239      41,604                 398      (165)   (38,540)     3,563               145     3,681 
 Comprehensive 
 loss 
 Loss for the 
  period ended 
  30 June 2018           -           -                   -          -    (1,253)   (1,253)             (137)   (1,808) 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Foreign 
  currency 
  translation 
  differences            -           -                   -       (97)          -      (97)               (8)     (105) 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Total 
  comprehensive 
  loss                   -           -                   -       (97)    (1,253)   (1,350)             (145)   (1,495) 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Transactions 
 with owners 
 Issue of                -           -                   -          -          -         -                 -         - 
 shares 
 Share-based 
  payments               -           -                   -          -         78        78                 -        78 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Total 
  transactions 
  with owners           40       1,572                   -          -         75     1,687                 -     1,687 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Balance as at 
  30 June 2018         239      41,604                 398      (262)   (39,715)     2,264                 0     2,264 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 
 
  Six month 
  period ended 
  30 June 2019 
 Balance as at 
  1 January 
  2019                 261      42,613       100       398      (669)   (40,642)     2,061                 9     2,070 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Comprehensive 
 loss 
 Loss for the 
  period ended 
  30 June 2019           -           -                   -          -    (1,414)   (1,414)               (9)   (1,423) 
 Foreign 
  currency 
  translation 
  differences            -           -                   -         17          -        17                          17 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Total 
  comprehensive 
  loss                   -           -                   -         17    (1,414)   (1,261)               (9)   (1,261) 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Transactions 
  with owners           22         530                                                 552                         552 
 Share-based 
  payments               -           -                   -          -         86        86                 -        86 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Total 
  transactions 
  with owners            -           -                   -          -         86        86                 -        86 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 Balance as at 
  30 June 2019         283      43,143       100       398      (652)   (41,970)     1,302                 0     1,302 
---------------  ---------  ----------  --------  --------  ---------  ---------  --------  ----------------  -------- 
 

The notes form an integral part of this condensed consolidated interim financial information.

GROUP STATEMENT OF CASH FLOWS (UNAUDITED)

SIX MONTH PERIODED 30 JUNE 2019

 
                                                      6 months   6 months          Year 
                                                         ended      Ended         ended 
                                                       30 June    30 June   31 December 
                                                          2019       2018          2018 
                                                       GBP'000    GBP'000       GBP'000 
 
 Cash flows from operating activities 
 Loss on ordinary activities before taxation           (1,319)    (1,541)         (2,469) 
 Adjustments for: 
 Inventory valuation adjustment                              -          -               3 
 Depreciation of property, plant and 
  equipment                                                 56         52             109 
 Amortisation of intangible assets                         157        249             414 
 Impairment of goodwill                                      -          - 
 Net finance (income)/cost                                 130         57           (112) 
 Share-based payments                                       86         78             168 
 Movements in working capital: 
 (Increase)/Decrease in inventories                         15       (62)             109 
 Decrease in trade and other receivables                   272       (20)              29 
 (Decrease) in trade and other payables                    228        592             242 
----------------------------------------------  ---  ---------  ---------  -------------- 
 Net cash flows used in operating activities             (375)      (595)         (1,507) 
---------------------------------------------------  ---------  ---------  -------------- 
 Cash flows from investing activities 
 Purchase of property, plant and equipment                   0       (56)            (60) 
 Proceeds from sale of property, plant 
  and equipment                                              -          -               - 
 Purchase of patents and development 
  costs                                                  (354)      (165)           (319) 
 Interest received                                           -          -               - 
 Tax Received / (Paid)                                     (9)        (2)             155 
---------------------------------------------------  ---------  ---------  -------------- 
 Net cash flows used in investing activities             (363)      (223)           (224) 
---------------------------------------------------  ---------  ---------  -------------- 
 Cash flows from financing activities 
 Proceeds from bank loan                                     0        500             500 
 Proceeds from issuance of ordinary 
  shares                                                   552          -           1,031 
 Net cash flows used in financing activities               552        500           1,531 
---------------------------------------------------  ---------  ---------  -------------- 
 Net (decrease)/increase in cash and 
  cash equivalents                                       (186)      (318)           (200) 
 Cash and cash equivalents at start 
  of period                                                228        466             466 
 Exchange (losses)/gains on bank balances                   26         25            (38) 
---------------------------------------------------  ---------  ---------  -------------- 
 Cash and cash equivalents at end of 
  period                                                    68        173             228 
---------------------------------------------------  ---------  ---------  -------------- 
 
 

The notes form an integral part of this condensed consolidated interim financial information.

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTH PERIODED 30 JUNE 2019

1. General information

Modern Water plc ('the Company') and its subsidiaries (together, 'the Group') invests in, develops and deploys new water technology. The Company is a public limited company incorporated and domiciled in England and Wales, whose shares are publicly traded on the AIM market operated by the London Stock Exchange. The registered office is Bramley House, The Guildway, Old Portsmouth Road, Guildford, Surrey GU3 1LR.

This condensed consolidated interim financial information was approved for issue by the Board of Directors on 27 September 2019. These interim financial results are unaudited and do not comprise statutory accounts within the meaning of section 435 of the Companies Act 2006.

Statutory accounts for the year ended 31 December 2018 were approved by the board of directors on 29 March 2019 and delivered to the Registrar of Companies. The auditor's opinion on those accounts was not modified, but contained an emphasis of matter paragraph related to the going concern. They did not contain any statement under section 498 of the Companies Act 2006.

2. Basis of preparation and going concern

2.1 Basis of preparation

The principal accounting policies have been applied consistently throughout the period in the preparation of these financial statements. This condensed consolidated interim financial information for the six months ended 30 June 2019 has been prepared in accordance with the AIM Rules for Companies of the London Stock Exchange plc and with IAS 34, 'Interim financial reporting' as adopted by the European Union.

The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

2.2 Going concern

The directors are required by company law to be satisfied that the Group has adequate resources to continue in business for the foreseeable future. A review has been conducted and the directors have concluded that such resources are available, and that the going concern basis is justified in preparation of the financial statements.

The Group's forecasts prepared by the directors reflect that funding requirements have reduced significantly following the liquidation of Modern Water Services Limited and the restructuring of the Group's Membrane Division and Central function.

The Group's remaining funding requirements will be met from:

   --      Proceeds from the sale of the assets of the Group's Monitoring Division. 
   --      The GBP141k raised from a share placing on 3 September 2019 
   --      The GBP68k cash balance as of 30-June-2019; 
   --      Continued revenue from the restructured Membrane Processes Division. 

3. Accounting policies

3.1 Accounting policy and disclosure changes

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2018.

4. Principal risks and uncertainties

A detailed explanation of the principal risks and uncertainties affecting the Group, and the steps taken to manage them, is set out in the Directors' Report section of the Group's 2018 Annual Report and Accounts, which is available of the Group's website at www.modernwater.com. The principal risks and uncertainties are summarised as follows:

   --      customer acceptance of the Group's technologies; 
   --      competitor technology; 
   --      socio-political risks; 
   --      scaling up the technology; 
   --      IP protection; 
   --      recruitment and retention of key personnel; 
   --      health and safety;  and 
   --      financial risks. 

There have been no significant changes in the nature of these risks that will affect the next six months of the financial year.

5. Critical accounting estimates and judgements

The preparation of financial statements in conformity with International Financial Reporting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. Estimates are continually evaluated and are based on historical experience and other factors, such as expectations of future events, and are believed to be reasonable under current circumstances. Actual results may differ from these estimates. The key sources of estimation uncertainty during the current year were consistent with the prior year, as detailed in the Group's 2018 Annual Report and Accounts.

6. Segmental analysis

The chief operating decision-maker is deemed to be the Board, for whom monthly financial information is provided by division to gross profit and direct overheads; below this financial information is reported in a consolidated Group format. For management reporting purposes the Group is organised into two operating segments (i) Membrane Processes; and (ii) Monitoring, which matches this divisional split.

Administrative expenses which are directly attributable to the two main operating divisions (comprised of business development, sales, operations and technical expenditure) are reported as expenditure in the respective division. However, a significant proportion of the Group's expenditure (legal, marketing, finance, facilities and directors' expenditure) is managed and reported centrally. As the commercial activities of the Group develop, this financial information is expected to evolve.

 
                                        6 months ended 30 June                      6 months ended 30 June 
                                                  2019                                        2018 
                              ------------------------------------------  ------------------------------------------ 
 Statement of Comprehensive 
  Income                       Membrane   Monitoring   Central     Total   Membrane   Monitoring   Central     Total 
                                GBP'000      GBP'000   GBP'000   GBP'000    GBP'000      GBP'000   GBP'000   GBP'000 
----------------------------  ---------  -----------  --------  --------  ---------  -----------  --------  -------- 
 Revenue                            212        1,808         -     2,020        277        1,617         -     1,894 
 Cost of sales                     (45)        (961)         -   (1,006)      (167)        (798)         -     (965) 
----------------------------  ---------  -----------  --------  --------  ---------  -----------  --------  -------- 
 Gross profit                       167          847         -     1,014        110          819         -       929 
 Administrative 
  expenses                        (791)        (906)     (196)   (1,893)      (614)        (947)     (473)   (2,034) 
 Share-based payments                 -            -      (86)      (86)          -            -      (78)      (78) 
 Operating profit/(loss) 
  before tax depreciation 
  and amortisation                (624)         (59)     (282)     (965)      (504)        (128)     (551)   (1,183) 
 Depreciation and 
  amortisation                     (34)        (180)       (0)     (214)      (123)        (178)         0     (301) 
----------------------------  ---------  -----------  --------  --------  ---------  -----------  --------  -------- 
 Operating profit/(loss)          (658)        (239)     (282)   (1,179)      (627)        (306)     (551)   (1,484) 
 Finance income                       -            -      (95)      (95)          -            -         3         3 
 Finance costs                        -            -      (44)      (44)          -            -      (60)      (60) 
 Profit/(loss) 
  before taxation                 (658)        (239)     (421)   (1,318)      (627)        (306)     (608)   (1,541) 
 Taxation                           (1)          (9)         -      (10)        109           42         -       151 
----------------------------  ---------  -----------  --------  --------  ---------  -----------  --------  -------- 
 Profit/(loss) 
  for the period                  (659)        (248)     (421)   (1,328)      (518)        (264)     (608)   (1,390) 
----------------------------  ---------  -----------  --------  --------  ---------  -----------  --------  -------- 
 

7. Administrative expenses by nature

 
                                                             6 months   6 months          Year 
                                                                ended      ended         ended 
                                                              30 June    30 June   31 December 
                                                                 2019       2018          2018 
                                                      Note    GBP'000    GBP'000       GBP'000 
---------------------------------------------------  -----  ---------  ---------  ------------ 
 Employee benefits expense                                      1,267      1,256         2,647 
 Share-based payments                                    8         86         78           168 
 Operating lease payments                                         133        127           240 
 Research and development                                          12         50            72 
 Auditors remuneration                                             27         49            82 
 Exceptional item: Inventory valuation 
  adjustment                                                        -          -             - 
 Other administrative expenses                                    456        552         1,162 
---------------------------------------------------  -----  ---------  ---------  ------------ 
 Total administrative expenses before depreciation 
  and amortisation                                              1,981      2,112         4,371 
 Depreciation and amortisation charges                            213        301           523 
 Exceptional item: Goodwill impairment                              -          -             - 
---------------------------------------------------  -----  ---------  ---------  ------------ 
 Total administrative expenses including 
  depreciation and amortisation                                 2,194      2,413         4,894 
---------------------------------------------------  -----  ---------  ---------  ------------ 
 

8. Share-based payments

 
                                              6 months   6 months          Year 
                                                 Ended      ended         ended 
                                               30 June    30 June   31 December 
                                                  2019       2018          2018 
                                               GBP'000    GBP'000       GBP'000 
-------------------------------------------  ---------  ---------  ------------ 
 Options (including EMI)                            86         78           168 
 Conditional share awards                            -          -             - 
 Equity-settled share-based payments                86         78           168 
-------------------------------------------  ---------  ---------  ------------ 
 Cash-settled share-based payments                   -          -             - 
-------------------------------------------  ---------  ---------  ------------ 
 Total share-based payments charged to the 
  income statement                                  86         78           168 
-------------------------------------------  ---------  ---------  ------------ 
 

9. Loss per share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period. As the Group is loss making, the diluted loss per share is equal to the basic loss per share.

 
                                               6 months   6 months          Year 
                                                  ended      ended         ended 
                                                30 June    30 June   31 December 
                                                   2019       2018          2018 
                                                GBP'000    GBP'000       GBP'000 
--------------------------------------------  ---------  ---------  ------------ 
 Loss attributable to equity holders of the 
  Company                                         1,328      1,390         2,170 
 Weighted average number of ordinary shares 
  in issue (thousands)                          106,830     95,406        97,792 
--------------------------------------------  ---------  ---------  ------------ 
 Basic loss per share                             0.91p      1.46p         2.22p 
--------------------------------------------  ---------  ---------  ------------ 
 
 
 
 

10. Related party transactions

IP Group plc held 14.03% of the ordinary share capital of the Company as at 30 June 2019 and appoints a non-executive director, and it is therefore deemed a related party. A service agreement dated 1 December 2006 was made between the Company and IP Group plc, whereby IP Group plc provides strategic, business development and administrative services to the Company. Fees for the period were GBP15,000 (2018: GBP15,000) and as at 30 June 2019 GBP54,000 (31 December 2018: GBP22,500) was outstanding under this agreement.

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation in the Group accounts.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

SIX MONTH PERIOD ENDED 30 JUNE 2019

11. Subsequent Event

On 30 August 2019 liquidators were appointed at two of the Group's subsidiaries: Modern Water Services Limited and Cogent Environmental Limited.

The directors confirm that, to the best of their knowledge, these condensed consolidated interim financial statements have been prepared in accordance with IAS34 as adopted by the European Union. The interim management report includes a fair review of the information required by the FCA's Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R), namely:

-- an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

   --      material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report. 

The directors of Modern Water plc are listed in the Modern Water plc Annual Report and Accounts 2018. A list of the current directors is maintained on the Company's website www.modernwater.com.

Piers Clark Simon Humphrey

Chairman Chief Executive Officer

27 September 2019

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

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

IR CKODPQBKDACB

(END) Dow Jones Newswires

September 30, 2019 02:00 ET (06:00 GMT)

1 Year Modern Water Chart

1 Year Modern Water Chart

1 Month Modern Water Chart

1 Month Modern Water Chart
Your Recent History
LSE
MWG
Modern Wat..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20191206 10:17:39