TIDMENGI 
 
22 May 2019 
 
                           ENERGISER INVESTMENTS PLC 
 
                          ('Energiser' or the 'Group) 
 
               FINAL RESULTS FOR THE YEARED 31 DECEMBER 2018 
 
Chairman's statement 
 
Introduction 
 
I am pleased to present the accounts for Energiser for the year ended 31 
December 2018. 
 
Energiser is an Investing Company whose strategy is to invest in quoted and 
unquoted companies to achieve capital growth.  Much activity has taken place 
over the last few years which endorses the focus in property particularly in 
the residential sector. 
 
In February 2018, Energiser invested GBP494,100 in a short-term loan secured on a 
21,900 sq. ft office property in Croydon with planning permission to convert 
into 71 residential units.  The loan represented 30% of the estimated value of 
the property and the interest was covered by rental income at a ratio of 4:1 
(rent: interest).  The gross interest paid on the loan was 7.5% p.a.  The loan 
was novated as part of our investment in KCR. 
 
In March 2018, Energiser acquired 2,435,710 new KCR ordinary shares at GBP0.70 a 
share for a total of GBP1,704,997.  The investment, made by participation in a 
subscription alongside other investors, was made at a 9% discount to net asset 
value per share of KCR as reported by KCR on 19 March 2018.  The subscription 
was funded with cash of GBP1,210,897 and the novation of the rights to its 
short-term loan investment of GBP494,100 described above.  The Group's holding 
represents 15.42% of KCR's ordinary share capital. 
 
KCR is an AIM quoted Real Estate Investment Trust ("REIT") and its objective is 
to acquire and manage a substantial rented residential property portfolio in 
the UK that generates both income flow and capital appreciation for its 
shareholders.  It intends to prioritise the acquisition of special purpose 
vehicles containing one or more residential properties as this structure has 
inherent benefits for the REIT.  KCR's focus is to invest in more affordable 
rental properties for private tenants. 
 
KCR's share price closed at GBP0.54p on 31 December 2018 and our investment has 
therefore been written down by GBP390,000 to GBP1,315,000. 
 
KCR's portfolio of properties was valued at GBP24.6m at 31 December 2018 and its 
net asset value per share was 70.97p (30 June 2018: 88.17p).  There is strong 
demand and a shortage of supply of good quality affordably priced housing in 
the UK.  Residential dwellings at this level should deliver attractive rental 
and capital value performance over the medium term.  KCR targets low to 
mid-price blocks of apartments for rent, aimed at new entrants and young 
professionals.  Energiser has found this to be a resilient segment of the 
rental market and has experienced positive rental growth at every rented asset 
in its portfolio. 
 
Results 
 
The Group had no revenues during the period (2017: GBP138,000) as it had sold its 
revenue generating investments in the previous year.  Administrative expenses 
have reduced by 61% principally due to a significant reduction in salary 
costs.  The Group made a loss before tax of GBP498,000 (2017: profit GBP604,000) 
which included a provision against the investment in KCR of GBP390,000. 
 
The Group's net assets had decreased from GBP1.77m to GBP1.28m and now equate to 
1.03p per share (2017: 1.43p). 
 
Outlook 
 
Our investment in KCR represents a substantial part of our asset base and we 
will continue to watch its progress whilst searching for other investment 
opportunities to achieve capital growth. 
 
Stephen Wicks 
 
Group Strategic Report 
 
for the year ended 31 December 2018 
 
The Directors present their Strategic Report on the Group for the year ended 31 
December 2018. 
 
Review of the business 
 
Energiser is registered as a Public Limited Company (plc). Its shares of 0.1p 
each are listed on AIM, part of the London Stock Exchange. 
 
The Group subscribed for 2,435,710 of Ordinary shares in KCR Residential REIT 
plc at 70p per share.  The chairman's statement provides further details on 
KCR's activities. 
 
Results and performance 
 
The results of the Group for the year show a loss on ordinary activities before 
and after taxation of GBP498,000 (2017: profit of GBP604,000 and GBP572,000). The 
shareholders' funds were GBP1,276,000 (2017: GBP1,774,000). 
 
Investment properties were sold during the year ended 31 December 2017 and thus 
there was no rental income during the year.  The Group's cash was used 
predominantly to acquire the investment in KCR. 
 
Strategy 
 
Energiser's strategy as an Investing Company is to invest, directly or 
indirectly, in quoted and unquoted companies and in the property sector to 
achieve capital growth in the medium term. 
 
Key performance indicators ("KPIs") 
 
The Group's KPIs are the return on project investment and the net assets 
position of the Group including net assets per share. These indicators are 
monitored by the Board and the details of performance against these are given 
below. 
 
                                                                            2018      2017 
 
Return on project investment                                                   -  GBP104,000 
 
Net assets                                                                     GBP         GBP 
                                                                       1,276,000 1,774,000 
 
Net assets per ordinary share                                              1.03p     1.43p 
 
Principal risks and uncertainties 
 
The management of the business and the nature of the Group's strategy are 
subject to a number of risks. The Directors have set out below the principal 
risks facing the business. Where possible, processes are in place to monitor 
and mitigate such risks. The Group operates a system of internal control and 
risk management in order to provide assurance that the Board is managing risk 
whilst achieving its business objectives. No system can fully eliminate risk 
and, therefore, the understanding of operational risk is central to the 
management process. 
 
To enable shareholders to appreciate what the business considers are the main 
operational risks, they are briefly outlined below: 
 
               Risk               Potential impact        Strategy 
 
Housing market A fall in the      Inability to realise    The Group seeks to ensure that 
               housing market in  maximum value in a      investment is made either 
               the regions in     timely fashion          directly or indirectly into the 
               which the Group    Adverse effect on the   residential property sector with 
               operates           timing of sales         a view to preserving capital. 
 
Interest rates Significant upward Increased borrowing     The Group mitigates any adverse 
               changes in         costs and a detrimental exposure to interest rate changes 
               interest rates     effect on profit        by controlling its gearing 
 
 
Future developments 
 
The Group will continue to focus on direct and indirect investment in the 
property sector. It will continue to invest in property operating companies in 
the residential market. 
 
By order of the Board 
 
Stephen Wicks 
Non-executive Chairman 
 
Group statement of comprehensive income 
 
for the year ended 31 December 2018 
 
                                                                             2018      2017 
                                                                            GBP'000     GBP'000 
 
Continuing operations 
 
Revenue arising in the course of ordinary activities                            -       138 
 
Cost of sales                                                                 (1)      (34) 
 
Gross (loss)/profit                                                           (1)       104 
 
Administrative expenses                                                      (92)     (235) 
 
Operating loss                                                               (93)     (131) 
 
Finance costs                                                                   -      (54) 
 
Finance income                                                                  6         - 
 
(Loss)/Gain on investments                                                  (411)        16 
 
Gain on financial instrument                                                    -       773 
 
(Loss)/profit before taxation                                               (498)       604 
 
Taxation                                                                        -      (32) 
 
(Loss)/profit for the year attributable to shareholders of                  (498)       572 
the Group 
 
Total comprehensive (loss)/profit for the year attributable                 (498)       572 
to shareholders of the Group 
 
(Loss)/profit per share 
 
Basic and diluted (loss)/profit per share from total and                  (0.40)p     0.46p 
continuing operations 
 
Diluted (loss)/profit per share is taken as equal to the basic (loss)/profit 
per share as Energiser's average share price during the period is lower than 
the exercise price of the share options and therefore the effect of including 
share options is anti-dilutive. 
 
Group statement of financial position 
 
as at 31 December 2018 
 
                                                                            2018      2017 
                                                                           GBP'000     GBP'000 
 
ASSETS 
 
Non-current assets 
 
Investments                                                                1,315         - 
 
                                                                           1,315         - 
 
Current assets 
 
Trade and other receivables                                                    8        33 
 
Cash and cash equivalents                                                    177     1,959 
 
                                                                             185     1,992 
 
Total assets                                                                 185     1,992 
 
LIABILITIES 
 
Current liabilities 
 
Trade and other payables                                                     190       185 
 
Tax and social security                                                       34        33 
 
                                                                             224       218 
 
Total liabilities                                                            224       218 
 
Net assets                                                                 1,276     1,774 
 
EQUITY 
 
Share capital                                                              2,392     2,392 
 
Share premium account                                                      7,189     7,189 
 
Convertible loan                                                              88        88 
 
Merger reserve                                                             1,012     1,012 
 
Retained earnings                                                        (9,405)   (8,907) 
 
Total equity                                                               1,276     1,774 
 
Group statement of changes in equity 
 
for the year ended 31 December 2018 
 
                             Share      Share Convertible    Merger Revaluation  Retained     Total 
                            capital   premium        loan   reserve     reserve  earnings    equity 
                              GBP'000   account       GBP'000     GBP'000       GBP'000     GBP'000     GBP'000 
                                        GBP'000 
 
At 1 January 2017             2,392     7,198          88     1,012         537   (9,479)     1,748 
 
Total comprehensive loss          -         -           -         -       (537)       572        35 
 
Issue of equity                   -       (9)           -         -           -         -       (9) 
 
Balance at 31 December        2,392     7,189          88     1,012           -   (8,907)     1,774 
2017 
 
Total comprehensive loss          -         -           -         -           -     (498)     (498) 
 
Balance at 31 December        2,392     7,189          88     1,012           -   (9,405)     1,276 
2018 
 
Group statement of cash flows 
 
for the year ended 31 December 2018 
 
                                                                            2018      2017 
                                                                           GBP'000     GBP'000 
 
Cash flows from operating activities 
 
(Loss)/Profit before taxation                                              (498)       604 
 
Adjustments for: 
 
     Loss on sale of investment properties                                    23      (16) 
 
     Fair value adjustment for listed investments                            390         - 
 
    Interest expense                                                           -        54 
 
    Interest income                                                          (6)         - 
 
     Decrease in trade and other receivables                                   3        51 
 
     Increase/(Decrease) in trade and other payables                           5     (641) 
 
Net cash generated (used in)/by operating activities                        (83)        52 
 
Cash flows from investing activities 
 
Interest received                                                              6         - 
 
Purchase of Investments                                                  (1,705)         - 
 
Mezzanine finance facility repaid                                              -        16 
 
Sale of investment properties                                                  -     2,816 
 
Net cash generated (used in)/by investing activities                     (1,699)     2,832 
 
Cash flows from financing activities 
 
Net proceeds on the issue of ordinary shares                                   -       (9) 
 
Repayment of borrowings                                                        -   (1,982) 
 
Interest paid                                                                  -      (54) 
 
Net cash used in financing activities                                          -   (2,045) 
 
Net (decrease)/increase in cash and cash equivalents                     (1,782)       839 
 
Cash and cash equivalents at beginning of financial year                   1,959     1,120 
 
Cash and cash equivalents at end of financial year                           177     1,959 
 
Note: 
 
The financial information set out above does not constitute the Group's 
statutory accounts for the years ended 31 December 2018 or 2017 but is derived 
from those accounts. Statutory accounts for 2017 have been delivered to the 
registrar of companies, and those for 2018 will be delivered in due course. The 
auditors have reported on those accounts; their reports were (i) unqualified, 
(ii) did not include a reference to any matters to which the auditors 
drew attention by way of emphasis without qualifying their report and (iii) did 
not contain a statement under section 498 (2) or (3) of the Companies Act 2006 
in respect of the accounts for 2018 or 2017. 
 
The Group's statutory accounts have been prepared under the historical cost 
convention, except as modified by the fair value of investment property and 
financial assets and liabilities (including derivatives). They have also been 
prepared in accordance with the Companies Act 2006 applicable to companies 
reporting under IFRS and in accordance with the accounting policies set out in 
the Group's statutory accounts and International Financial Reporting Standards 
(IFRS) as adopted by the European Union and that were effective at 31 December 
2018. 
 
Those financial statements have been prepared on the going concern basis, the 
Directors having considered the cash forecasts for the next twelve months from 
the date of the approval of those financial statements. In doing so they have 
given due regard to the risks and uncertainties affecting the business, the 
liquidity of investments and the liquidity risk.  The Group and Company make 
investments for the long term. Accordingly, the Group and Company rarely trade 
investments in the short term. The Group currently has investments in KCR 
Residential REIT plc. As this is a traded investment it is deemed liquid. On 
this basis, the Directors have a reasonable expectation that the funds 
available to the Group are sufficient to meet the requirements indicated by 
those forecasts. 
 
During the year, new accounting standards were adopted including IAS7 (amended) 
- Statement of Cash Flows and IFRS 9 Financial Instruments.  The latter applies 
to classification and measurement of financial assets and financial 
liabilities, impairment provisioning and hedge accounting. The Group does not 
presently hold any complex financial instruments.  Given that inter Group 
balances are eliminated on consolidation and does not affect Group results, no 
material impairment allowance adjustments are expected.  It is considered that 
the introduction of IFRS 9 is not expected to have a material impact on the 
results or cash flows of either the Group or the Company. 
 
The AGM will be held at Burnham Yard, London End, Beaconsfield, HP9 2JH at 
11.00 am on 20 June 2019. 
 
Energiser's Annual Report and Accounts along with the Notice of Annual General 
Meeting will be posted to shareholders shortly and will be available to view 
and download on Energiser's website at www.energiserinvestments.co.uk. 
 
For further information contact: 
 
Energiser Investments plc 
 
John Depasquale               +44 (0) 1494 762450 
 
Nishith Malde                     +44 (0) 1494 762450 
 
Cairn Financial Advisers LLP 
 
Jo Turner                            +44 (0) 20 7213 0880 
 
Sandy Jamieson 
 
 
 
END 
 

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