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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 : 8126K
Resources In Insurance Group PLC
28 August 2012
28 August 2012
RESOURCES IN INSURANCE GROUP PLC
("RiIG", the "Group" or the "Company")
INTERIM RESULTS
The Board of RiIG, a leading provider of claims management and consultancy solutions to the UK insurance profession, is pleased to announce today Interim Results for the six months to 30 June 2012.
HIGHLIGHTS
-- GBP200,000 successfully raised at a premium to the share price with Bob Morton increasing his holding to 21.28%, t1ps EIS Fund increasing its holding to 9.54% and The French Settlement, and Executive Chairman John French, increasing their holding to 4.60% of the enlarged share capital;
-- July and August has seen the commencement of the start of a number of other business gains for both the I-Team division and for Verify;
-- Significant development in the transfer of the I-Team service into the financial services sector working on Payment Protection Insurance (PPI) issues;
-- Strategic Alliance agreed with Woodspeen Training Group PLC;
-- Audit and consultancy work has been secured with a top 10 insurer to audit part of their supply chain for claims leakage and technical deficiencies; and
-- Board confident that with our existing pipeline and recent contract gains in the second half will see a significant improvement giving a strong and solid platform going forward.
Commenting on the Results Executive Chairman John French said: "While the results for the first six months are both disappointing and indeed frustrating they should not be taken out of context of the overall picture for the Group going forward.
"We have successfully broadened the range of services we provide to our markets and continue to win new business from both existing and new clients. Weather related claims will always be part of our business but are being diluted by growth in other areas such as motor, personal injury and PPI. We are confident with our existing pipeline and recent contract gains in the second half will see a significant improvement giving a strong and solid platform going forward."
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 / Brian Stockbridge +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 / Harry Fielder +44 (0) 7768 537 739
EXECUTIVE CHAIRMAN'S STATEMENT
The performance of the Group during the first six months of trading have been affected by the unusual mild weather conditions during the run up to December, which continued through to April. Historically this period produces significant volumes of bad weather related insurance claims. In addition, and as a result of the low demand for such claims, there were delays to the start of a major new contract. Turnover for the period to June was GBP688,219 compared with GBP1,373,215 for the same period during the previous year with a loss of GBP696,581 compared with a profit of GBP13,488 for the same period.
The major change to the weather pattern has continued through the early summer, but in reverse. The period has seen extremely high levels of rain fall resulting in non-seasonal claims for rain and flood damage to property and related matters. This will be reflected in the second half of the current year.
The Group views this weather pattern as exceptional, based on past experience and will continue to act for insurers on weather related claims which are an important contributor to overall turnover.
Operations update - a period of business gains and opportunity
July and August has seen the commencement of the delayed contract and the start of a number of other business gains for both the I-Team division and for Verify, a new service that has been test marketed during the last year, from both existing and new clients. Much of this work is non-weather related.
One of the most significant developments has been the ability to transfer the I-Team service into the financial services sector working on Payment Protection Insurance (PPI) issues. On 19 June the Group announced it had secured a contract with a leading bank valued in excess of GBP750,000 in connection with PPI. Work started on this contract at the end of July. The Group expects this to lead to further work from this particular client and is also in discussions with a further bank and major financial institutions with regard to providing additional resources to assist with such work. With the continued pressure on banks, not just on PPI but also on Libor rates and other industry issues, the Group sees this as an area of significant opportunity.
A long awaited contract for Verify, with a leading firm of loss adjusters has been confirmed and will commence in September. In addition a medium sized motor insurer has agreed to pilot Verify's motor investigation services, and further discussions are taking place with several other interested parties.
Audit and consultancy work has been secured with a top 10 insurer to audit part of their supply chain for claims leakage and technical deficiencies, initially delayed due to internal structures with the client.
Training and apprenticeship programme launched
The Group has previously announced its intension to provide training and apprenticeship opportunities to the insurance profession. A strategic alliance has been agreed with Woodspeen Training Group PLC to deliver a claims specific Apprenticeship scheme to the industry in an effort to up skill the claims profession. This will see internal benefits for both RiIG and our key customers as we continue the drive for professionalism. Training provision is already seeing great interest as is the Group's selective placement proposition.
GBP200,000 raised at a premium to the share price
To provide additional working capital, the Group has successfully placed 40,000,000 shares with existing and new shareholders at 0.50p, a premium on the current price, raising GBP200,000. Entrepreneur Bob Morton, through his Guernsey based investment holding company Hawk Investment Holdings Limited, has subscribed for a further 10,000,000 new shares at 0.50p taking him up to a total of 83,000,000 and giving him 21.28% of the enlarged share capital.
t1ps EIS Fund subscribed for a further 15,000,000 shares increasing their holding to 37,222,222 or 9.54% of the enlarged share capital. Finally Spread Trustee Company, on behalf of The French Settlement, held by Executive Chairman John French, subscribed for 2,700,000 taking the Trustees holding to 3.68% which, when coupled with the current holding of The French Settlement and John French results in a total of 4.60% of the enlarged share capital.
Other shareholders subscribed for a further 12,300,000 new shares bringing the total number of shares in circulation following the placing to 389,995,709 - an increase from 349,995,709. All shares were placed at 0.50p, a premium on the current price raising GBP200,000.
The Board of RiIG are delighted at this support from existing and new shareholders.
John French
Chairman
28 August 2012
RESOURCES IN INSURANCE GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2012
Hot Features
Premium
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2012 June 2011 2011 Audited
Unaudited Unaudited GBP
GBP GBP
Revenue 688,219 1,373,215 3,064,243
Administrative expenses (1,378,488) (1,346,358) (3,140,301)
Share option expense - (11,894) (11,894)
Profit/(loss) from operations (690,269) 14,963 (87,952)
Finance costs - net
Interest payable (6,312) (1,475) (2,108)
Profit/(loss) before tax (696,581) 13,488 (90,060)
Taxation 3 - - -
Profit/(loss) for the period (696,581) 13,488 (90,060)
Basic profit/(loss) per
share (0.199p) 0.00p (0.028p)
Diluted profit/(loss) per
share (0.199p 0.00p (0.028p)
RESOURCES IN INSURANCE GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2012
Share Share Share option Retained Total
capital premium reserve Deficit
account GBP
GBP GBP GBP GBP
Balance at 1 January
2011 31,647 143,802
Issue of Options 2,186,825 1,341,177 11,894 (3,415,847) 11,894
Issue of shares 38,462 161,538 - - 200,000
Profit for the
period - - - 13,488 13,488
Balance at 30 June
2011 2,225,287 1,502,715 43,541 (3,402,359) 369,184
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 -
Loss for the period - - - (696,581) (696,581)
Balance at 30 June
2012 2,257,787 1,600,215 43,541 (4,202,488) (300,945)
RESOURCES IN INSURANCE GROUP PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2012
30 June 2012 30 June 2011 31 December
Unaudited Unaudited 2011
Audited
GBP GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 20,924 29,841 23,817
Current assets
Work in progress 36,895 253 368,501
Trade and other receivables 177,614 542,004 337,384
Cash and cash equivalents 78,212 86,533 135,343
292,721 628,790 841,228
Total assets 313,645 658,631 865,045
EQUITY
Capital and reserves attributable
to
the Company's equity shareholders
Share capital 2,257,787 2,225,287 2,257,787
Share premium account 1,600,215 1,502,715 1,600,215
Share option reserve 43,541 43,541 43,541
Retained deficit (4,202,488) (3,402,359) (3,505,907)
Total equity (300,945) 369,184 395,636
LIABILITIES
Current liabilities 614,590 289,447 469,409
Non-current liabilities - - -
Total liabilities 614,590 289,447 469,409
Total equity and liabilities 313,645 658,631 865,045
RESOURCES IN INSURANCE GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2012
6 months 6 months Year ended
ended ended 31 December
30 June 2012 30 June 2011 2011
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Profit/(loss) from operations (690,269) 14,963 (87,952)
Adjustments for:
Depreciation of property, plant
and equipment 3,990 6,189 12,212
Loss on disposal of property, - - -
plant and equipment
Share option expense - 11,894 11,894
Operating cash flows before movements
in working capital (686,279) 33,046 (63,846)
(Increase)/Decrease in work in
progress 331,606 152 (368,096)
(Increase)/Decrease in receivables 159,770 (198,073) 6,547
(Decrease)/increase in payables 145,181 (116,988) 32,974
Cash used in operations (49,722) (281,863) (392,421)
Interest paid (6,312) (1,475) (2,108)
Tax refunded - - -
Net cash used in operating activities (56,034) (283,338) (394,529)
Cash flows from investing activities
Purchase of property, plant and
equipment (1,097) (9,343) (9,342)
Net cash flows used in investing
activities (1,097) (9,343) (9,342)
Cash flows from financing activities
Proceeds from issue of shares - 230,000 360,000
Proceeds from issue of convertible
loan stock - - 30,000
Net cash from financing activities - 230,000 390,000
Net (decrease)/increase in cash
and cash equivalents (57,131) (62,681) (13,871)
Cash and cash equivalents at beginning
of period 135,343 149,214 149,214
Cash and cash equivalents at end
of period 78,212 86,533 135,343
RESOURCES IN INSURANCE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2012
1. Accounting Policies
Basis of accounting
The financial statements have been prepared on an historical cost basis. 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.
RiIG has prepared detailed profit and cash flow projections; projected gross profit margins are realistic and consistent with past performance, the existing and anticipated pricing structure and order book. Projected debtor collections are also realistic and consistent with past performance. Overhead levels have been closely considered and consistent with cost saving measures implemented.
The Board considers the cost base to be stable, and the risk of losing significant customers to be low, due to the nature of the services.
In January 2011 the company received a working capital loan of GBP100,000.
Cash flow projections have analysed all known liabilities, commitments and repayment dates in the future, including the period beyond twelve months from the date of this report. These projections include current enacted taxation rates.
The Group's main products are considered to be robust and will benefit from external factors such as 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.
Projections have been tested by performing sensitivity analyses on critical assumptions, specifically levels of activity, to ensure sufficient levels of working capital. In these projections turnover has been flexed to incorporate both current confirmed work and new work expected to be won in the year.
There are additional plans in place to alter the amounts and timing of cash flows so unexpected needs or opportunities can be addressed. The Board has completed an equity fund raising in August 2012 for GBP200,000.
As such the directors continue to adopt the going concern basis in the preparation of the financial statements.
RESOURCES IN INSURANCE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2012
1. Accounting Policies (continued)
Statement of compliance
The financial statements of Resources in Insurance Group plc and all its subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
Basis of consolidation
The consolidated financial statements incorporate the results of the Company and all its subsidiary undertakings as if they were a single entity. Subsidiary undertakings are consolidated from the date of acquisition using the acquisition method of accounting.
Revenue recognition
Revenue is recognised by reference to the stage of completion of the transaction, in accordance with IAS 18, and represents the value of services provided in the period and is stated net of VAT.
Property, plant and equipment
Property, plant and equipment are stated at cost less provision for depreciation. Depreciation is provided at rates calculated to write off the cost of each asset less its estimated residual value evenly over its estimated useful life, as follows:
Claims software over three to five years
Office equipment and fittings over three to five years
Website development over three years
Investments
Fixed asset investments are stated at cost less provision for diminution in value.
Work in progress
Work in progress is valued at the lower of cost and net realisable value.
Trade and other receivables
Trade and other receivables are measured on initial recognition at fair value. When objective evidence exists that the asset is impaired the estimated irrecoverable amount is written off to profit and loss.
Trade and other payables
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Leasing and finance lease commitments
Assets obtained under hire purchase contracts and finance leases are capitalised in the balance sheet and depreciated over their useful economic lives. The interest element of the rental obligations is charged to the profit and loss account over the period of the contract and represents a constant proportion of the balance of capital payments outstanding. Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.
RESOURCES IN INSURANCE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2012
1. Accounting Policies (continued)
Current and Deferred taxation
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the company's subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations is subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future.
Pension costs
The Group contributes to two Group Personal Pension Schemes for Directors and senior employees. Pension contributions are charged to the profit and loss account as they are incurred.
Share-based payment transactions
The group operates a number of equity-settled, share-based compensation plans. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each balance sheet date, the entity revises its estimates of the number of options that are expected to vest. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity.
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
RESOURCES IN INSURANCE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2012
2. Financial Information
The financial information above does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The interim financial information has not been audited but has been reviewed by the Company's auditors.
The interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting. These interim statements have been prepared in accordance with those IFRS standards and IFRIC interpretations issued and effective as at the time of preparing these statements.
3. Taxation
No liability to taxation arises due to the loss incurred during the period. At 30 June 2012 the Group had Corporation Tax losses and unclaimed capital allowances of approximately GBP3,310,000 subject to agreement with HM Revenue and Customs.
No deferred tax asset has been recognised in respect of these losses due to there being uncertainty as to whether sufficient future taxable profits will be generated by the company in the near future.
6 months 6 months Year ended
ended ended 31 December
30 June 2012 30 June 2011 2011 Audited
Unaudited Unaudited GBP
GBP GBP
Domestic current year tax
UK corporation tax - - -
Adjustment for prior - - -
years
Current tax charge - - -
Factors affecting the tax charge for
the period:
Profit/(loss) on ordinary
activities
before taxation (696,581) 13,488 (90,060)
Corporation tax at
26.5%(June
2011: 28%) (184,593) 3,777 (23,866)
Effects of:
Expenses not deductible
for
tax purposes 4,100 5,036 4,305
Depreciation and
amortisation 1,057 1,733 3,236
Adjustments to previous - - -
periods
Capital allowances (292) - (2,475)
Unrelieved losses -
Other adjustments 179,728 (10,546) 18,800
Current tax credit - - -
RESOURCES IN INSURANCE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2012
4. Earnings per share
The earnings per share is based on the profit for the period and the weighted average number of ordinary shares in issue and ranking for dividend.
6 months 6 months Year ended
ended ended 31 December
30 June 2012 30 June 2011 2011 Audited
Unaudited Unaudited GBP
GBP GBP
Profit/(loss) for the period (696,581) 13,488 (90,060)
Weighted average number
of shares 349,995,709 314,202,041 317,465,150
Fully diluted average number
of shares 349,995,709 333,961,309 317,465,150
5. Share capital
6 months 6 months Year ended
ended ended 31 December
30 June 2012 30 June 2011 2011 Audited
Unaudited Unaudited GBP
GBP GBP
Allotted, called up and
fully paid:
Ordinary shares of 0.1p
each 349,995 317,496 349,995
Deferred shares of 0.1p
each 1,907,792 1,907,791 1,907,792
2,257,787 2,225,287 2,257,787
RESOURCES IN INSURANCE GROUP PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2012
6. Cash and cash equivalents
6 months 6 months Year ended
ended ended 31 December
30 June 2012 30 June 2011 2011
Unaudited Unaudited Audited
GBP GBP GBP
Cash and bank balances 78,212 86,533 135,343
Bank overdraft - - -
78,212 86,533 135,343
7. Related party transactions
On 24(th) January 2012 the Group was advanced a loan of GBP100,000 to assist with working capital, by Spread Trustee Company Limited on behalf of The French Settlement. The loan is on commercial terms with interest at 10% per annum.
8. Post Balance Sheet Event
During August 2012 the Company has completed a placing of shares raising GBP200,000 equity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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