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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 : 3404U
Resources In Insurance Group PLC
29 November 2013
29 November 2013
RESOURCES IN INSURANCE GROUP PLC
("RiIG", the "Group" or the "Company")
HALF YEAR RESULTS
AND RELATED PARTY LOAN
The Board of RiIG, a leading provider of claims management and consultancy solutions to the UK
Insurance profession is pleased to announce today Half Year Results for the six months to 30 September 2013.
The turnover for the period was GBP1,730,898 compared with GBP813,224 for the comparable six months in the previous year, with losses of GBP252,944 compared with GBP566,744 for the comparable period.
The improvement is due to the benefits of increased business from both existing and new clients beginning to impact on all aspects of performance. At the Annual General Meeting in October 2013 , the Board stated that the main financial benefit is expected to impact in the second half of the financial year and the Board is pleased to say that the third financial quarter is showing continued improvement Looking forward, the Group is continuing to secure new business to improve prospects for the full year to March 2014
As a consequence of this trading improvement and increased business opportunities the Group has decided to review its corporate structure and move all its trading activities currently undertaken through the PLC into a wholly owned subsidiary, RiIG Limited. The Board believes that there will be benefits in having a trading entity separate from the PLC including having trading relationships undertaken through an entity with the same name as the Brand Name of the Company and allowing the senior operational management team to drive cost efficiencies and to be appropriately incentivised.
In order to support this continued improvement in trading, which normally requires an upfront working capital investment, the Board has also raised additional working capital via the provision of secured loan capital of GBP100,000 from a substantial shareholder, Hawk Investment Holdings Limited ("Hawk"). The interest rate payable on the loan is 1 per cent. per month, payable monthly. The loan is repayable in full in December 2014. As Hawk is connected to Bob Morton, a substantial shareholder, the loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors, having consulted with the Company's nominated adviser, Zeus Capital, consider that the terms of the loan are fair and reasonable insofar as the Company's shareholders are concerned. Further details of the loans, which now total GBP706,500, are set out in notes 5 and 7 to the Half Year Results.
The I-Team claims handling division continues to be the principal activity both in the insurance and financial services sector although other recently introduced services are also beginning to contribute to the overall performance.
Commenting, Executive Chairman John French said: "We are encouraged by the recovery to date. The spread of our business as it now stands removes the vulnerability we had previously to weather related claim issues."
For further information:
Resources in Insurance Group plc John French, Executive Chairman www.riig.co.uk Nominated Adviser / 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 30 September 2013
Hot Features
Premium
Unaudited Unaudited Audited
6 months 6 months 15 months
30 September 30 September 31 March
2013 2012 2013
Notes GBP GBP GBP
Revenue 1,730,898 813,224 2,459,666
Administrative expenses (1,939,446) (1,368,750) (3,661,037)
Share option expense - - -
------------
Loss from operations (208,548) (555,526) (1,201,371)
Interest receivable -
Interest payable (44,396) (11,218) (34,947)
------------
Loss before tax (252,944) (566,744) (1,236,318)
Taxation - - -
------------
Loss for the period (252,944) (566,744) (1,236,318)
Total comprehensive
income for the period (252,944) (566,744) (1,236,318)
Basic and Diluted
loss per share 3 (0.065p) (0.160p) (0.336p)
The Group's operating loss relates to continuing operations.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the period ended 30 September 2013
Group Share Share
Share premium option Retained
capital account reserve deficit Total
GBP GBP GBP GBP GBP
Balance at
1
January
2012 2,257,787 1,600,215 43,541 (3,505,907) 395,636
Issue of - - - - -
options
Issue of
shares 40,000 151,500 - - 191,500
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)
==================== ===================== ================== =================== ===================
Balance at
1
April
2012 2,257,787 1,600,215 43,541 (3,817,819) 83,724
Issue of - - - - -
options
Issue of
shares 40,000 151,500 - - 191,500
Costs of - - - - -
fund
raising
Exercise - - - - -
of options
Loss for
the
period - - - (566,744) (566,744)
-------------------- --------------------- ------------------ ------------------- -------------------
Balance at
30
September
2012 2,297,787 1,751,715 43,541 (4,384,563) (291,520)
==================== ===================== ================== =================== ===================
Balance at
1
April
2013 2,297,787 1,751,715 43,541 (4,742,225) (649,182)
Issue of - - - - -
options
Issue of - - - - -
shares
Costs of - - - - -
fund
raising
Exercise - - - - -
of options
Loss for
the
period - - - (252,944) (252,944)
-------------------- --------------------- ------------------ ------------------- -------------------
Balance at
30
September
2013 2,297,787 1,751,715 43,541 (4,995,169) (902,126)
==================== ===================== ================== =================== ===================
CONSOLIDATED BALANCE SHEET
30 September 2013
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
Notes GBP GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 14,230 18,985 16,044
------------ ------------ -----------
Current assets
Work in progress 57,832 54,937 12,123
Trade and other receivables 400,247 281,340 541,800
Cash and cash equivalents 66,759 31,697 26,094
------------
524,838 367,974 580,017
------------ ------------ -----------
Total assets 539,068 386,959 596,061
EQUITY AND LIABILITIES
Equity
Share capital 2,297,787 2,297,787 2,297,787
Share premium account 1,751,715 1,751,715 1,751,715
Share option reserve 43,541 43,541 43,541
Retained deficit (4,995,169) (4,384,563) (4,742,225 )
------------
Equity attributable to
equity holders of the
parent (902,126) (291,520) (649,182 )
------------ ------------ -----------
Current liabilities
Trade and other payables 804,694 561,979 858,743
Convertible loan notes 4 30,000 30,000 30,000
Secured loans 5 606,500 - 270,000
Other loans 6 - 8 86,500 86,500
------------
1,441,194 678.479 1,245,243
------------
Total equity and liabilities 539,068 386,959 596,061
CONSOLIDATED AND COMPANY CASH FLOW STATEMENT
For the period ended 30 September 2013
Unaudited Unaudited Audited
6 Months 6 Months 15 Months
30 September 30 September 31 March
2013 2012 2013
Cash flows from operating GBP GBP GBP )
activities (208,548) (555,526) (1,201,371
Loss from operations
Adjustments for:
Depreciation of property,
plant and equipment 3,138 3,818 9,795
Loss on disposal of property, - - -
plant and equipment
Share option expense - - -
------------ ------------- -----------
Operating cash flows
before movements in working
capital (205,410) (551,708) (1,191,576 )
(Increase)/Decrease in
work in progress (45,709) 113,762 356,378
Decrease/(Increase) in
receivables 141,553 135,672 (204,416)
(Decrease)/Increase in
payables (54,049) 157,763 419,334
------------ ------------- -----------
Cash used in operations (163,615) (144,511) (620,280)
Interest paid (44,396) (11,218) (34,947)
Tax refunded - - -
------------ ------------- -----------
Net cash used in operating
activities (208,011) (155,729) (655,227)
------------ ------------- -----------
Cash flows from investing
activities
Purchases of property,
plant and equipment (1,324) (1,098) (2,022)
------------ ------------- -----------
Net cash used in investing
activities (1,324) (1,098) (2,022)
------------ ------------- -----------
Cash flows from financing
activities
Proceeds from issue of
shares - 191,500 191,500
Proceeds from/(repayment
of) loans 250,000 (13,500) 356,500
------------ ------------- -----------
Net cash from financing
activities 250,000 178,000 548,000
------------ ------------- -----------
Net increase/(decrease)
in cash and cash equivalents 40,665 21,173 (109,249)
Cash and cash equivalents
at beginning of year 26,094 10,524 135,343
------------ ------------- -----------
Cash and cash equivalents
at end of year 66,759 31,697 26,094
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 30 September 2013
1. General Information
The Group extended its accounting period to 31 March 2013. The half year results presented are for the six month period 1 April 2013 to 30 September 2013. Comparatives shown are for the six months to 30 September 2012.
2. Significant accounting policies
Going concern
The Group incurred a net loss of GBP252,944 during the period ended 30 September 2013 and, at that date, the Group's current liabilities exceeded its total assets by GBP902,126 and it had net current liabilities of GBP916,356. 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 previous periods. The PAYE arrears are due to be cleared by March 2015. 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 Group has secured loan notes of GBP606,500 due to Hawk Investment Holdings Limited and Spread Trustees Company 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 also a further GBP30,000 Unsecured Convertible Loan from Spread Trustees Company Limited, on behalf of the French Settlement. 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 Group 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.
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 GBP252,944 (2012: loss of GBP566,744) and on 389,995,709 ordinary shares, (2012: 353,329,042) 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 389,995,709 (2012: 353,329,042) ordinary shares.
4. Convertible Loan Notes
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
GBP GBP GBP
Spread Trustee Company
Limited on behalf of
the 30,000 30,000 30,000
French Settlement
This Loan Note was issued on 21 November 2011 carrying interest at 10% and a conversion price of 0.55 pence per ordinary share and may be converted by the holder prior to 21 November 2016.
5. Secured loans
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
GBP GBP GBP
Hawk Investment Holding
Limited 385,000 - 135,000
Spread Trustee Company
Limited on behalf of
the 221,500 - 135,000
------------- ------------- ---------
French Settlement
606,500 - 270,000
These loans are secured by way of a debenture and bear interest at 12% per annum. Of these loans, capital repayment is due in respect of GBP270,000 in January 2014, GBP150,000 in August 2014, and GBP186,500 in October 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.
6. Other Loans
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
GBP GBP GBP
Spread Trustee Company
Limited on behalf of the - 86,500 86,500
-------------- ------------- ---------
French Settlement - 86,500 86,500
The above loan was unsecured and carried 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. The loan was repaid, but replaced by a further advance made by Spread Trustees Company Limited on behalf of The French Settlement, on a secured basis and included in the GBP221,500 secured loans made by Spread Trustee Company Limited on behalf of the French Settlement shown in note 5.
7. Event Subsequent to the balance sheet date
In November 2013 the Group was advanced a loan of GBP100,000 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 5, and demonstrates the continued confidence that Hawk Investment Holdings Limited have in the Group. The interest payable is at 12%? per annum and the loan is due for repayment in November 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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