TIDMHNG
RNS Number : 9837B
Hawkwing PLC
14 October 2020
14 October 2020
Hawkwing plc
("Hawkwing" or the "Company")
Unaudited interim results for the six months ended 30 June
2020
Hawkwing plc (LSE: HNG) announces its interim results for the
six months ended 30 June 2020.
Financial Highlights
-- Operating loss from continuing operations of $0.1 million (H1 2019 loss: $0.6 million)
-- Loss before tax of $0.1 million (H1 2019 loss: $0.6 million)
-- Loss per share from continuing operations of $0.10 cents (H1 2019 loss: $0.44 cents)
Post Period
-- Moved listing from AIM to the Standard Segment of the
Official List ("Standard List") on 30 September 2020
-- Raised GBP1.29 million, before expenses, as part of move to
the Standard List by placing 43,116,659 at 3p a share
-- Completed a 20:1 share consolidation
Keith Sadler, Senior Independent Non-Executive Director,
commented: " In the first half of the year, our focus has been to
ensure we maintained good cash control whilst moving to the
Standard List; raising GBP1.29 million; and re-establish a listing
for the Company's shares.
"The Company's strategy is to pursue an acquisition and we
intend to target a business with the prospects of being profitable
and cash generative. Having moved to the Standard List and
strengthened the Company's balance sheet, we can focus on
identifying such a business and look forward to updating the market
as appropriate. On behalf of the board, I would like to thank all
our shareholders for their continued support."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Hawkwing plc
Keith Sadler, Senior Independent
Non-Executive Director +44 20 7618 9100
-----------------
Beaumont Cornish
Roland Cornish and James Biddle +44 20 7628 3396
-----------------
Luther Pendragon
Harry Chathli, Alexis Gore +44 20 7618 9100
-----------------
About Hawkwing plc
Hawkwing is a Standard List Cash Shell. It intends to pursue a
reverse takeover transaction, with the aim of delivering
shareholder value. The board intends to seek a business with the
prospects of being profitable and cash generative. For more
information, please visit www.hawkwing.co
Interim Management Report
Overview
During the first half of 2020 the Company reviewed its AIM
listing and decided that a listing on the Standard List would be
more appropriate as a Cash Shell. The move to the Standard List was
completed on 30 September 2020 and the Company's balance sheet was
strengthened with a fund raising of GBP1.29 million before
costs.
The Directors believe the move to the Standard List increases
the Company's ability to complete an acquisition. The funds raised
will help the Company to evaluate potential acquisitions, undertake
due diligence on prospective targets, and pay other transaction
costs in connection with an acquisition.
The Company's strategy will focus on identifying an acquisition,
targeting businesses with the prospects of being profitable and
cash generative. The Directors will consider opportunities in a
range of sectors and are focusing on an acquisition that can create
value for shareholders in the form of capital growth and/or
dividends.
Headline results
For the six-month 2020 2019
period to 30 June Change
$000's $000's
------------------------ -------- -------- -----------
Revenue - - -
Operating income - - -
Headline EBITDA (145) (524) 361.4%
Headline (loss)/profit
before tax (145) (632) 435.9%
Headline loss per
share (cents) (0.10) (0.44) 0.34 cents
Cash flow and net debt
The Company's cash balance as at 30 June 2020 was $0.03 million
(H1 2019: $0.1 million) and it had no debt as at 30 June 2020. In
September 2020, the Company raised GBP1.29 million of cash, before
expenses.
Dividend
The Directors have not declared an interim dividend for the six
months ended 30 June 2020. The Directors will continue to review
the Company's dividend policy.
Current trading and outlook
Hawkwing is now a Standard List cash shell and the board, as
stated previously, is seeking potential businesses that could be
reversed into the Company. The board intend to identify a business
with the prospects of being profitable and cash generative. The
process of identifying such a business has started and the board
look forward to updating the market as appropriate.
Risks and uncertainties
The Directors do not consider that the Company's principal risks
and uncertainties have changed since the publication of its
prospectus dated 23 September 2020, which contains a detailed
explanation of the risks relevant to the Company on Page 12 and
following and is available at
https://hawkwing.co/wp-content/uploads/2020/09/Prospectus-Final.pdf
Statement of directors' responsibilities in respect of the
condensed interim report and consolidated financial statement
The Directors; being Keith Sadler; Ken Wotton; Ian Robinson and
Dwight Mighty (all Non-Executive) confirm that the condensed set of
interim financial statements has been prepared in accordance with
international Accounting Standard 34 "interim financial reporting",
as adopted by the European Union and that interim report includes a
fair review of the information required by DTR 4.2.7R and DTR
4.2.8R, namely an indication of important events that have occurred
during the first six months 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.
By order of the Board
Keith Sadler
Senior Independent Non Executive Director
Condensed Income statement (unaudited)
For the six month period to 30 June 2020
6 month 6 month period
period to to 30 June
30 June 2019
2020
$000's $000's
Administrative expenses (145) (632)
Operating loss (145) (632)
Headline EBITDA (145) (524)
Exceptional costs 3 - (108)
Operating (145) (632)
Loss before taxation (145) (632)
Taxation - -
----------- ---------------
Loss after taxation (145) (632)
Loss after taxation for the period (145) (632)
Loss for the year is entirely attributable to the owners of the
company.
(pe Loss per share attributable to the owners of
the company:
Basic (cents) 2 (0.10) (0.44)
Diluted (cents) 2 (0.10) (0.44)
Condensed Comprehensive Income (unaudited)
For the six-month period to 30 June 2020
6 month period to 30 June 2020 6 month period to 30 June 2019
$000's
$000's
Loss for the period (145) (632)
Foreign exchange translation effect (9) 12
Total comprehensive expense (154) (620)
Total comprehensive expense for the period is entirely
attributable to the owners of the company.
Condensed Balance Sheet (unaudited)
Note 30 June 2020 30 June 2019 31 December 2019
$000's $000's $000's
Unaudited Unaudited Audited
Current assets
Trade and other receivables 80 117 84
Cash and cash equivalents 27 133 227
Total current assets 107 250 311
Current liabilities
Trade and other payables (75) (247) (125)
Net current assets 32 3 186
Net assets 32 3 186
Equity
Share capital 4,473 4,473 4,473
Share premium 46,079 46,079 46,079
Merger reserve 309 309 309
Foreign currency reserve (7,165) (7,149) (7,157)
Retained loss (43,664) (43,709) (43,518)
Equity attributable to owners of the company 32 3 186
Condensed Statement of Cash Flows (unaudited)
For the six-month period to 30 June 2020
6 month period to 30 June 2020 6 month period to 30 June 2019
Note $000's $000's
Unaudited Unaudited
Net cash outflow from operating activities 5 (191) (693)
Net decrease in cash and cash equivalents (191) (693)
Cash and cash equivalents at beginning of
period 227 814
Foreign currency translation effect (9) 12
Cash and cash equivalents at end of period 27 133
Condensed Statement of Changes in Equity (unaudited)
For the six-month period to 30 June 2020
Share Share Merger Foreign Retained Total
Capital Premium reserve Currency Loss
Reserve
$000s $000's $000's $000s $000s $000s
--------------------- --------- --------- --------- ---------- --------- --------
Balance as at 1
January 2019 4,473 46,079 309 (7,161) (43,077) 623
Total comprehensive
income for period - - - 12 (632) (620)
Balance as at 30
June 2019 4,473 46,079 309 (7,149) (43,709) 3
========= ========= ========= ========== ========= ========
Balance as at 1
January 2020 4,473 46,079 309 (7,156) (43,519) 186
Total comprehensive
income for period - - - (9) (145) (154)
Balance as at 30
June 2020 4,473 46,079 309 (7,165) (43,519) 32
========= ========= ========= ========== ========= ========
Notes to the Interim Report
General information
Hawkwing plc (the "Company") is incorporated and domiciled in
the United Kingdom. The Company is listed on the Standard Segment
of the Official List market of the London Stock Exchange. The
registered address is 25 Walbrook, London EC4N 8AF.
Basis of preparation
The condensed financial statements have been prepared in
accordance with IAS 34 "Half Year Financial Reporting" as adopted
by the European Union and the Disclosure and Transparency Rules of
the Financial Conduct Authority. These condensed financial
statements do not comprise statutory accounts within the meaning of
section 434 of the Companies Act 2006, do not include all the notes
of the type normally included in an annual financial report and
have not been audited or reviewed by the auditors pursuant to the
Financial Reporting Council guidance on Review of Interim Financial
Information. Accordingly, this report should be read in conjunction
with the annual report for the year ended 31 December 2019 (the
"Annual Financial Statements"), which has been prepared in
accordance with International Financial Reporting Standards as
adopted by the European Union ("IFRS"). The Annual Financial
Statements constitute statutory accounts as defined in section 434
of the Companies Act 2006 and a copy these statutory accounts has
been delivered to the Registrar of Companies. The auditor's report
on those statutory accounts was unqualified, drew attention to a
material uncertainty in relation to going concern by way of
emphasis, and did not contain a statement under 498(2) or 498(3) of
the Companies Act 2006.
The accounting policies adopted in the preparation of the
condensed financial statements are consistent with those used to
prepare the financial statements for the year ended 31 December
2019 and those applicable for the year ended 31 December 2020. The
preparation of the condensed financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates. In preparing these
condensed financial statements, the significant judgements made by
management in applying the accounting policies and the key sources
of estimation uncertainty were the same as those that applied to
the Annual Financial Statements described above. The condensed
financial statements have been prepared on a going concern basis,
under the historical cost convention.
The reporting currency of the Company is US$, unless stated
otherwise.
Application of new standards in issue
In the current period, no new or amended standards have been
adopted for the period commencing on or after 1 January 2020 have
had any impact on these financial statements.
Standards and interpretations not yet applied
The following relevant new standards, amendments to standards
and interpretations have been issued, but are not effective for the
financial year beginning on 1 January 2020, as adopted by the
European Union, and have not been early adopted:
IFRS 17 Insurance Contracts (effective 1 January 2021)
Going concern
As a result of the move to the Standard List and the raising of
GBP1.29 million, before costs, the Board continues to adopt the
going concern basis of accounting in preparing the financial
statements.
1. Segmental Analysis
The Company's single reporting segment is that of its activities
as an investment holding company. This activity takes place wholly
in the United Kingdom.
2. Loss per share
Basic and diluted loss per share attributable to ordinary
shareholders:
6 month period 6 month period
to 30 June to 30 June
2020 2019
cents per cents per
share share
Basis loss per share (0.10) (0.44)
Diluted loss per share (0.10) (0.44)
The calculation of loss per share per share is based on the
following data:
6 month period 6 month period
to 30 June
2019
to 30 June $000's
2020
$000's
Loss for the purposes of basic earnings
per share being net loss attributable to
owners of the Company (145) (632)
Number of Number of
Shares Shares
Weighted average number of shares in issue: 143,427,199 143,427,199
3. Exceptional costs
Exceptional items comprise:
6 month period 6 month period
to 30 June
2019
to 30 June $000's
2020
$000's
Continuing operations
Impairment of loans - (117)
Costs relating to offers by potential investors - 225
Total exceptional and acquisition related
costs - 108
4. Taxation
The company incurred no current taxation liability in the 6
months to 30 June 2020 or the 6 months to 30 June 2019. The company
has tax losses carried forward of $1,334,970 (2019:$764,892) in
respect of which no deferred tax asset has been recognised due to
uncertainty of the Company's expected future profitability
5. Notes to the Statement of Cash Flow
6 month period 6 month
period to
30 June
2019
to 30 June $000's
2020
$000's
Operating loss for the period (145) (632)
Operating cash flows before movements in
working capital (145) (632)
Decrease/(increase) in trade other receivables 9 117
(Decrease) in trade other payables (55) (177)
Cash used in operations (191) (693)
Income taxes paid - -
Net cash outflow from operating activities (191) (693)
Cash and cash equivalents comprise cash and short-term bank
deposits with an original maturity of three months or less. The
carrying amount of these assets is approximately equal to their
fair value.
The Company's net debt has moved as follows during the
period:
1 January Cash flow Non-cash 30 June
2020 Movements 2019
$000 $000 $000 $000
----------- ----------- ----------- ---------
Cash and bank balances 227 (191) (9) 27
Borrowings - - - -
Net (debt)/cash 227 (191) (9) 27
6. Interim accounts
This interim statement will be available on the Company's
investor relations website at www.hawkwing.co
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END
IR EANEDFFAEFFA
(END) Dow Jones Newswires
October 14, 2020 02:00 ET (06:00 GMT)
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