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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Resources In | LSE:RIIG | London | Ordinary Share | GB0006158686 | 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% | 0.21 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMRIIG
RNS Number : 1592P
Resources In Insurance Group PLC
30 September 2013
30th September 2013
RESOURCES IN INSURANCE GROUP PLC
FINAL RESULTS
The Board of Resources in Insurance Group plc ("RiIG" or "the Group"), a leading provider of claims management and consultancy solutions to the UK Insurance profession, announces its Final Results for the 15 month period March 2013.
The period under review was extremely demanding for the UK claims industry, particularly in the Property claims arena. As a result, the Group has incurred losses of GBP1,236,318 for the 15 month period to March 2013 on a turnover of GBP2,459,666. This compares with a loss of GBP90,060 and a turnover of GBP3,064,243 for the previous 12 month year to December 2011. RiIG was not alone in suffering a significant downturn in property claim instructions as a result of the benign weather at the end of 2011 and the beginning of 2012. This had an impact on the financial results for the 6 months to 30 June 2012.
The Group has implemented a programme to remove such dependency and the success of services, such as Iteam, have provided a valuable platform for diversification. In order to further counterbalance this, the Group has continued to review its product positioning to exploit expanding areas in the wider financial services sector, including the handling of PPI and general complaints in the UK market. Whilst the Group will continue to handle weather related claims, going forward the structure now in place has removed the dependency on this sector.
During the period under review, the Board has secured additional working capital via the provision of loan capital of GBP150, 000 from a significant shareholder, Bob Morton, via Hawk Investment Holdings Limited. In total, Executive Chairman John French, through Spread Trustee Company Limited on behalf of The French Settlement, and Hawk Investment Holdings Limited have provided loans totalling GBP251,000 and GBP285,000 respectively. The Board has sees this as a preferred route to issuing equity whilst the share price is low and creating dilution for shareholders.
The Directors have implemented a change of year end from 31 December to 31 March and the next set of results will be the interim results for the 6 months to 30 September 2013, which will be announced during December 2013.
A concerted effort to broaden the client base and further introduce additional services has proven to be successful. The Group secured a significant contract with a major retail bank for the Iteam division in relation to PPI claims and has subsequently been successful in implementing and extending this contract through to 2014. This has demonstrated the ability of the Group to transfer our core Iteam unit into another business area. In addition, the Board recognised that as the Group entered some of these new business areas it would be necessary to recruit staff to fulfil our commitments. Discussions with clients revealed a significant challenge with regards to the recruitment of quality personnel across the profession as a result of downsizing in the market over recent years. To meet this challenge a small team was formed and has successfully engaged personnel for PPI and our other projects. As a consequence of their success, external clients have requested their services and the new business unit "Absolute Professional Talent - APT" was created. The unit has already reduced our internal costs by GBP190,000 since April 2013, and the Group is encouraged by the benefits - internally and externally - this unit can provide in the placement market. This month the Group announced that APT had secured a three year agreement with a leading Professional Insurance Services organisation to provide recruitment and placement services.
RiIG has a blend of solutions that capitalises on quality service offerings and market reputation. Trading areas complement each other as well as focussing on key areas where insurers and financial services providers are finding it difficult or critical to improve.
The Group now provides a comprehensive range of services through a number of established units.
Iteam - in-sourced teams of claims and financial service specialists who are managed and inserted into client operations. In addition this model can be utilised on an Outsourced basis if required.
Verify - Field investigation across Property; Motor; Liability and counter fraud. In addition, the Group has received interest in our surge proposition (requirement to support insurers and adjusters in the event of a major weather event in the UK)
Consult - our consultancy division. As insurers can no longer rely upon investment returns to create or enhance margin, there is a greater requirement to examine operational costs and really understand where savings and efficiencies can be made. This can result in audit reviews being undertaken; change programme support or indeed coaching and training. The recently introduced apprenticeship programme is also proceeding well and is gaining greater credibility.
Absolute Professional Talent - APT whilst not recruitment in its purest form - it is more selective - the Directors have been impressed with the performance of this team and the ground being covered both internally and externally. The current year is proving to be very encouraging in this area.
Commenting, Executive Chairman, John French, said;
"Following what has undoubtedly been a difficult period, the Directors are encouraged by the market outlook. The business is fundamentally about People - Our Own and Our Clients - be it their staff or customers. The Group has highly experienced and motivated personnel in all our divisions whose role - recognised by our clients - is to improve their own staff as well as better their customers' experience. This has been recognised during 2012/13 to extend outside of the General Insurance sector and into the wider financial services arena. This is something on which we can continue to build. The Group is beginning to see the benefits of the new contracts secured during the latter part of the period to 31 March 2013. Based on current levels of contracted business, the Directors believe the opportunity to move to profit at the end of the current financial year can be achieved. Historically, the Group has a good record of converting enquires into contacts and with strong prospects for further new contracts the Board views the future with confidence.
I would like to extend my appreciation to my fellow Directors, Management, Staff and Shareholders for their support during what has been a difficult period."
John French Executive Chairman.
For further information:
Resources in Insurance Group plc John French, Executive Chairman www.riig.co.uk Nominated Adviser and Joint Broker +44 (0) 7836 722 482 Zeus Capital Limited Ross Andrews / Andrew Jones +44 (0) 161 831 1512 Joint Broker Peterhouse Capital Finance Limited Jon Levinson +44 (0) 20 7469 0935
Financial PR
Yellow Jersey PR Limited
Dominic Barretto +44 (0) 7768 537 739
STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 March 2013
Hot Features
Premium
Period ended Year ended
31 March 31 December
2013 2011
Notes GBP GBP
Revenue 2,459,666 3,064,243
Administrative expenses (3,661,037) (3,140,301)
Share option expense - (11,894)
Loss from operations (1,201,371) (87,952)
Interest receivable - -
Interest payable (34,947) (2,108)
Loss before tax (1,236,318) (90,060)
Taxation -
Loss for the period (1,236,318) (90,060)
Total comprehensive income
for the period (1,236,318) (90,060)
Basic loss per share 3 (0.336p) (0.028p)
Diluted loss per share 3 (0.336p) (0.028p)
The Group's operating loss relates to continuing operations.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the period ended 31 March 2013
Group & Company Share premium Share option Retained
Share capital account reserve deficit Total
GBP GBP GBP GBP GBP
Balance at 1
January
2011 2,186,825 1,341,177 31,647 (3,415,847 ) 143,802
Issue of options - - 11,894 - 11,894
Issue of shares 70,962 259,038 - - 330,000
Exercise of options - - - - -
Loss for the period - - - (90,060 ) (90,060)
---------------------- --------------------- -------------------- ------------------- -------------------------
Balance at 31
December
2011 2,257,787 1,600,215 43,541 (3,505,907 ) 395,636
====================== ===================== ==================== =================== =========================
Balance at 1
January
2012 2,257,787 1,600,215 43,541 (3,505,907 ) 395,636
Issue of options - - - - -
Issue of shares 40,000 160,000 - - 200,000
Costs of fund
raising - (8,500) - - (8,500)
Exercise of options - - - - -
Loss for the period - - - (1,236,318 ) (1,236,318)
---------------------- --------------------- -------------------- ------------------- -------------------------
Balance at 31 March
2013 2,297,787 1,751,715 43,541 (4,742,225) (649,182)
====================== ===================== ==================== =================== =========================
CONSOLIDATED BALANCE SHEET
31 March 2013
31 March 31 December
2013 2011
Notes GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 16,044 23,817
---------- --------------
Current assets
Work in progress 12,123 368,501
Trade and other receivables 541,800 337,384
Cash and cash equivalents 26,094 135,343
580,017 841,228
---------- --------------
Total assets 596,061 865,045
EQUITY AND LIABILITIES
Equity
Share capital 2,297,787 2,257,787
Share premium account 1,751,715 1,600,215
Share option reserve 43,541 43,541
Retained deficit (4,742,225 ) (3,505,907 )
Equity attributable to equity
holders of the parent (649,182) 395,636
---------- --------------
Current liabilities
Trade and other payables 858,743 439,409
Convertible loan notes 30,000 30,000
Secured loans 4 270,000 -
Other loans 5 86,500 -
1,245,243 469,409
Total equity and liabilities 596,061 865,045
These financial statements were approved by the Board of Directors on 27(th) September 2013
Stephen J Coke
Director
Company Registration Number 03922895
CONSOLIDATED AND COMPANY CASH FLOW STATEMENT
For the period ended 31 March 2013
2013 2011
GBP GBP
Cash flows from operating activities
Loss from operations (1,201,371) (87,952 )
Adjustments for:
Depreciation of property, plant
and equipment 9,795 12,212
Loss on disposal of property, - -
plant and equipment
Share option expense - 11,894
------------- --------
Operating cash flows before
movements in working capital (1,191,576) (63,846 )
Decrease/(Increase) in work
in progress 356,378 (368,096)
(Increase)/Decrease in receivables (204,416) 6,547
Increase in payables 419,334 32,974
------------- --------
Cash used in operations (620,280) (392,421)
Interest paid (34,947) (2,108)
Tax refunded - -
------------- --------
Net cash used in operating activities (655,227) (394,529)
------------- --------
Cash flows from investing activities
Purchases of property, plant
and equipment (2,022) (9,342)
------------- --------
Net cash used in investing activities (2,022) (9,342)
------------- --------
Cash flows from financing activities
Proceeds from issue of shares 191,500 360,000
Proceeds from loans 356,500 30,000
------------- --------
Net cash from financing activities 548,000 390,000
------------- --------
Net decrease in cash and cash
equivalents (109,249) (13,871)
Cash and cash equivalents at
beginning of year 135,343 149,214
------------- --------
Cash and cash equivalents at
end of year 26,094 135,343
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 March 2013
1. General information
The Group is incorporated in the United Kingdom. The address of the registered office is given on page 1. The nature of the Group's operations and its principal activities are set out in note 3. The Group extended its accounting period to 31(st) March 2013. The results presented are for the fifteen month period 1(st) January 2011 to 31(st) March 2013. Comparatives shown are for the twelve months to 31(st) December 2011.
2. Significant accounting policies
Going concern
The group incurred a net loss of GBP1,236,318 during the period ended 31 March 2013 and, at that date, the group's current liabilities exceeded its total assets by GBP649,182 and it had net current liabilities of GBP665,226. As a result, the group faced significant cash flow problems in the period, and there remains uncertainty over the ability of the group to settle its liabilities as they fall due.
The Group has in place an agreed payment plan with HMRC to clear arrears of PAYE which built up over the period. Since the period end, the Group has been able to meet its commitment to paying down the arrears [and the Group expects to be able to continue to meet all of the remaining monthly payment plan repayments over the life of the agreement]. The PAYE arrears are due to be cleared by March 2015.
During the period the Group issued secured loan notes of GBP270,000 to Hawk Investment Holdings Limited and Spread Trustees Limited, on behalf of the French Settlement, who are both substantial shareholders in the Group. The loans notes are due for repayment in the 2014 year. There is uncertainty over the ability of the Group to make the repayments. The Directors are of the view that the Group will continue to receive the support of these two key shareholder lenders, through deferral of the loan repayment date, until the Group is in a position to be able to repay the loan finance. If the Group is unable to make the repayments as they fall due, Hawk Investment Holdings Limited and Spread Trustees Limited have confirmed, that subject to the review of the Group's financial position at the time, they will consider refinancing the loans.
The directors, based on current management information and financial projections, have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
The company has prepared detailed profit and cash flow projections; projected gross profit margins are considered realistic and consistent with past performance, the existing and anticipated pricing structure and order book. Projected debtor collections are also considered realistic and consistent with past performance. Overhead levels have been closely considered and consistent with cost saving measures implemented.
The Board has taken steps to make the cost base more responsive to changes in demand for the Group's services. The Board considers these steps will result in better utilisation of staff and lower recruitment costs. The Board considers and the risk of losing significant customers to be low, due to the nature of the services and contracts in place.
The Group's main products are considered to be robust and are anticipated to benefit from external factors such as further Ministry of Justice reforms and industry attitudes to the claims environment. Significant new business has not been factored into the financial projections, although there are a number of new business contracts in negotiation. Current market response and the conversion of potential customers have both been good.
There are additional plans in place to alter the amounts and timing of cash flows so unexpected needs or opportunities can be addressed. Improved trading, confidence from existing shareholders and current investment market conditions give the directors' confidence that the Group will be able to capitalise on the growth opportunities that present themselves.
In August 2013, after the period end, the Group received a loan of GBP150,000 for working capital, from Hawk Investment Holdings Limited.
The directors, whilst recognising the uncertainty over the Group's ability to settle liabilities as they fall due, continue to adopt the going concern basis in the preparation of the financial statements.
3. Loss per share
The calculation of the basic and fully diluted loss per share is based on the loss for the year of GBP1,236,318 (2011: loss of GBP90,060) and on 368,193,511 ordinary shares, (2011: 317,465,150) being the weighted average number of ordinary shares in issue during the year. In calculating fully diluted loss per share, the weighted average number of shares was 368,193,511 (2011: 317,465,150) ordinary shares.
4. Secured loans
2013 2011
Group Company Group Company
GBP GBP GBP GBP
Hawk Investment Holdings Limited 135,000 135,000 - -
Spread Trustee Company Limited on behalf 135,000 135,000 - -
of the French Settlement ________ _______ _______ _______
270,000 270,000 - -
Both loans are secured by way of a debenture and bear interest at 10% per annum. Both loans are due for capital repayment in January 2014 and interest due is paid monthly. Whilst the Group's ability to meet the capital repayment terms is uncertain, being dependent on its future cash flow, both lenders are supportive. The lenders have confirmed that, subject to a review of the Group's financial position at the time, they will consider refinancing the loans on a similar basis. The loan from Hawk Investment Holdings Limited is made available by significant shareholder Bob Morton. The Loan from Spread Trustee Company Limited on behalf of the French Settlement has been made available to the Group because the French Settlement is a Trust in which members of John French's family have a beneficial interest.
The Directors have every expectation that the Group will continue to receive the support provided, by two major shareholders, including rolling over, or postponing capital repayments to a farther future date, should this be required.
5. Other Loans
2013 2011
Group Company Group Company
GBP GBP GBP GBP
Spread Trustee Company Limited on behalf
of the French Settlement 86,500 86,500 - -
The above loan is unsecured and bears interest at 10% per annum. The loan was made available to the Group through Executive Chairman John French. The loan was originally provided for working capital as a short term bridging loan for 14 days, based on the loan agreement in place. However, the lender has been happy to roll over the loan and interest continues to be paid on a monthly basis.
6. Event Subsequent to the balance sheet date
In August 2013 the Group was advanced a loan of GBP150,000 to assist with working capital, by Hawk Investment Holdings Limited, a substantial shareholder in the Group. This loan was made available under the existing security in place for the loan disclosed in note 18, and demonstrates the continued confidence that Hawk Investment Holdings Limited have in the Group. The interest payable is at 10% per annum and the loan is due for repayment in August 2014.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS
Period ended 31 March 2013
We have audited the Group's financial statements on pages 15 to 32. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the Group's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Group's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Group and the Group's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors' Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Emphasis of Matter
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 2 to the financial statements concerning the group's ability to continue as a going concern. The group incurred a net loss of GBP1,236,318 during the period ended 31 March 2013 and, at that date, the group's current liabilities exceeded its total assets by GBP649,182 and it had net current liabilities of GBP665,226. These conditions, as explained in note 2 to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group was unable to continue as a going concern.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state of affairs of the group and parent company as at 31 March 2013;
the group financial statements have been prepared in accordance with IFRSs as adopted by the European Union;
the parent company financial statements have been prepared in accordance with IFRSs as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report if, in our opinion:
-- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-- the parent company financial statements are not in agreement with the accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit.
Richard Collis (Senior Statutory Auditor)
For and on behalf of
Saffery Champness Lion House
Chartered Accountants Red Lion Street
Statutory Auditors London, WC1R 4GB
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEWFLWFDSEEU
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