TIDMSCHO
RNS Number : 6349G
Scholium Group PLC
25 July 2019
25 July 2019
Scholium Group plc ('Scholium' or the 'Group')
Preliminary Results for the year ended 31 March 2019
This announcement contains inside information for the purposes
of Article 7 of regulation 596/2014
Scholium is engaged in the business of rare books, art and
collectibles. Its primary operating subsidiary is Shapero Rare
Books which is one of the leading UK dealers trading
internationally in rare and antiquarian books and works on paper.
The Group also trades alongside other third party dealers in the
broader arts and collectibles business via its subsidiary, Scholium
Trading Limited and deals in and sells by auction stamps and
philatelic items through its subsidiary Mayfair Philatelics
Limited. The Board of Scholium is pleased to announce its final
results and annual accounts for the year ended 31 March 2019.
Operating Highlights
-- Revenues up 8% to GBP7.1 million for full financial year
-- The Group made further progress during the second half of the
financial year in developing its three separate revenue streams,
Shapero Rare Books, Scholium Trading and Mayfair Philatelics
-- Group profitable for second half of financial year
-- Scholium Trading produced good profits with further potential ahead
-- Small Group loss for full year after absorbing first half
start-up costs of new philatelic division
-- Satisfactory trading in the first quarter of the new financial year
Financial Highlights
Years ended 31 March (GBP'000) 2019 2018
restated
Revenue 7,137 6,619
Gross Profit 2,791 2,450
Gross Margin 39% 37%
(Loss)/ profit before tax (13) 1
Cash 192 216
NAV/Share 72.9p 73.0p
A copy of the 2019 Annual Report (including the notice of Annual
General Meeting ("AGM") will be sent to shareholders in due course.
The Annual Report will also be available on the Company's website
in due course. http://scholiumgroup.com
The Company's AGM will be held at 10.30am at 32 St George
Street, London W1S 2EA on 25 September 2019.
Jasper Allen, Chairman of Scholium, noted "We are pleased to
have increased revenues in a difficult retail environment. While
the small loss for the year was disappointing, the continued
progress in developing our three revenue streams has been
encouraging. The Group continues to look for acquisitions and is
focused on opportunities to improve shareholder value."
For further information, please contact
Scholium Group plc
Jasper Allen, Chairman. Peter Floyd, Finance
Director +44 (0)20 7493 0876
---------------------------------------------- -------------------
WH Ireland Ltd - Nominated Adviser
Chris Fielding , Jessica Cave +44 (0)20 7220 1666
Chairman's Statement
The Group increased revenues by 8% to GBP7.1m as a result of the
Group continuing with its strategy of becoming a more widely based
collectibles business. The Group continued to make further progress
in developing its three separate revenue streams - Shapero Rare
Books, Scholium Trading and Mayfair Philatelics.
The Group had a profitable second half of the financial year,
however this was not enough to offset the first half losses, which
arose mainly due to the losses of GBP104,000 in the start-up
Mayfair Philatelics. The retail industry remains under
pressure.
The core business, Shapero Rare Books, had a disappointing year
with lower profits than last year, in line with many retail
businesses in the United Kingdom. Scholium Trading performed well
in the year and delivered a higher profit than the prior year,
which was particularly pleasing given its relatively modest stock.
Mayfair Philatelics had a successful second half achieving a profit
with three auctions held, compared to one in the first half
year.
While the loss for the full year is disappointing, the progress
made by Mayfair Philatelics is encouraging, and in Scholium Trading
new dealers have been identified with whom to partner and early
results have been promising. Shapero Rare Books continues to be one
of the world's leading rare book dealers and has made an
encouraging start to the new financial year.
The board has reviewed several acquisition opportunities in each
of its three revenue streams during the course of the year but
concluded that none were sufficiently profitable on a sustainable
basis to pursue. The board is continuing to search for further
acquisitions.
The Group remains well capitalised with GBP8.7 million of stock,
GBP0.2 million in cash and no debt. The Group also has an undrawn
overdraft facility available to it. The board recognizes that the
Group's trading performance in recent years has not provided the
intended returns to shareholders, despite a reduction in the
overheads implemented two years ago. Accordingly the board have
commenced a further review of the Group's cost base, in order to
achieve further savings in the overall costs of operations.
Results
Group revenue for the year of GBP7.1 million (2018: GBP6.6
million) generated a loss before tax of GBP13,000 (2018: restated
profit of GBP1,000). The adoption of IFRS 15 reduced the prior year
profit from GBP38,000 to GBP1,000 as a result of the deferral of
sales into the current year previously recognised in the prior year
accounts due to the different revenue recognition policies
required.
Staff
The Group's operations continue to rely on the hard work and
dedication of our employees and I would like to take this
opportunity of thanking them again for their contribution and
effort during the year.
Current Trading and Prospects
The Group has made a satisfactory start to the new financial
year. The board remains committed to delivering improved
shareholder value going forward.
Strategic Report
This report provides an overview of the Group's strategy and
business model; gives a review of the performance of the operating
entities and of the financial position at 31 March 2019; and sets
out the principal risks to which the Group is exposed. In addition,
it comments briefly on the future prospects of the business.
Principal Activities & Review of the Business
The Group is engaged in the business of dealing in rare books,
fine art and collectibles. The majority of the business transacted
is as a dealer - buying, owning and selling items, either on its
own or together with third parties who also deal as principals. The
Group also conducts auctions where both its own stock and third
party consignments are available for sale. The Group maintains
value from ownership of its stock and generates value through its
expertise, astute buying and the profitable sale of stock.
Shapero Rare Books is the main business of the Group. It is a
leading international dealer in rare and collectible books and
works on paper with special expertise in Natural History,
Illustrated, Travel and Exploration and Literature. The business
also trades as Shapero Modern in modern and contemporary prints and
limited editions by established artists.
Scholium Trading focuses on trading works of art in the wider
art market using its own capital and the expertise of a small
number of known third party dealers and their client bases.
Mayfair Philatelics is a dealer and auctioneer of stamps with a
particular focus on British and Commonwealth stamps. Regular
auctions are held in London and at Lingfield, Sussex, where both
the company's own stock and third party consignments are sold.
Strategy & Key Objectives
The Group's strategy is to:
-- build, either organically or by acquisition, a portfolio of
collectibles businesses to enable further diversification of its
revenue and profit streams;
-- attract individuals or teams of specialists in markets
complementary to the Group's existing businesses;
-- optimize working capital in existing businesses to provide
funds for new business development; and
-- continue to develop all its entities by trading alongside
other dealers in high value rare and collectible items and by
participating in the acquisition for onward sale of large
consignments.
The Directors intend, in due course, to provide an attractive
level of dividends to shareholders along with stable asset-backed
growth driven by the markets in which the Group operates.
Review of the year from continuing operations
The Group's revenues increased to GBP7.1m from GBP6.6m in the
prior year due to increased sales in both Scholium Trading and
Mayfair Philatelics. The Group performed better in the second half
of the financial year, but not sufficiently well to eliminate the
GBP56k loss from the first half year. The Group's result for the
year to 31 March 2019 was therefore a loss of GBP13k. Revenue
increased by 8% and gross profit increased by 14% compared with the
prior year ended 31 March 2018, due mainly to a fuller auction
programme in the new philatelic division.
There was a corresponding increase in costs in Mayfair
Philatelics in both the direct costs of the auctions and overhead
expenses. Central costs, including the costs of the Company's
listing on AIM, were lower than the prior year.
Group performance for the 12 months ended 31 March 2019 by half
year
----------------------------------------------------------------------
6 months ended (GBP'000) H1 (unaudited) H2 Variance
------------------------------- ------------------ ------ ---------
Revenue 3,297 3,840 16%
Gross Profit 1,176 1,615 37%
(Loss)/profit before tax (56) 43 n/a
The increase in revenue reflects the increased auction programme
in Mayfair Philatelics and higher sales in Scholium Trading.
The Group's stock at 31 March 2019 was GBP8,657k compared with
the prior year of GBP8,841k. Shapero Rare Books had increased stock
levels in anticipation of a successful first quarter's trading in
June and July 2019. Scholium Trading's stock reduced by comparison
with the prior year due primarily to higher sales in the last
quarter of the year to 31 March 2019. The fuller auction programme
of Mayfair Philatelics and the consequent increase in sales also
reduced the stock compared with the prior year.
Group cash at 31 March 2019 was GBP192k, broadly similar to the
GBP216k cash in the prior year. The Group's overdraft was utilised
during the year in order to manage its working capital
requirements.
Key Performance Indicators
The Group is managed by and reports on a number of key
performance indicators (KPIs).
The current principal KPIs are:
-- Sales, gross profit and gross margin, profit before tax;
-- the breadth and distribution of the stock of rare books held by the Group;
-- stock turnover; and
-- cash flow.
Key Performance Indicators
(2018 has been restated due
to the adoption of IFRS 15) Variance
Years ended 31 March (GBP'000) 2019 2018
Revenue 7,137 6,619 +7.8%
Gross Profit 2,791 2,450 +13.9%
Gross Margin 39% 37% -
Stock Turnover (months) 24.2 22.8 +6.1%
Cash at bank 192 216 -11.0%
Group Performance
The financial information below excludes the application of
intragroup management charges.
Shapero Rare Books
Shapero Rare Books (SRB) continued trading profitably during the
year ended 31 March 2019. The year's sales were GBP5,642k, slightly
below the prior year's sales of GBP5,756k and gross profit likewise
at GBP2,214k for the year ended 31 March 2019 compared with the
prior year of GBP2,237k.
Direct costs including the attendance at fairs, exhibitions, and
catalogues increased from GBP487k in the prior year to GBP500k in
the year to 31 March 2019. This reflected the costs of exhibiting
at fairs as a result of re-joining the Antiquarian Booksellers
Association in the prior year. Overhead costs increased from
GBP1,523k in the prior year to GBP1,562k in the year to 31 March
2019 due to higher staffing costs. Interest paid was GBP12k (2018:
GBP0).
SRB therefore recorded a profit before tax of GBP140k compared
with the profit of GBP191k in the prior year. The adoption of IFRS
15 reduced the prior year profit by GBP37k.
Scholium Trading
Scholium Trading performed well in the year ended 31 March 2019
with a contribution to gross profit of GBP192k compared to GBP162k
for the prior year. In addition, the current stock includes some
items with potentially high levels of return.
Mayfair Philatelics
The year to 31 March 2019 included the establishment of a full
auction programme for Mayfair Philatelics, There were three
auctions in the second half compared to one in the first half. The
first half loss of GBP104k was turned round in the second half,
during which a GBP46k profit was made, resulting in an overall loss
for the year of GBP58k.
Central Costs
Central costs include the cost of all board members as well as
those costs associated with the Group's AIM listing. The central
costs were GBP276k in the year to 31 March 2019, a further
reduction of GBP27k from the prior year's total of GBP303k. These
costs include the cost of managing the Group, its audit, tax and
professional fees, as well as the costs of maintaining the AIM
listing for the Company's shares.
Year ended 31 March 2019 (GBP'000)
Shapero Rare Scholium
Books Trading Mayfair Central Consolidated
-------------- ---------------- -------- ------- ------- ------------
Revenue 5,642 395 1,100 - 7,137
Gross Profit 2,214 192 386 - 2,791
Gross Margin 39% 49% 35% 0% 39%
Profit/(Loss)
before tax 140 181 (58) (276) (13)
Year ended 31 March 2018 (GBP'000) Restated
Shapero Rare Scholium
Books Trading Mayfair Central Consolidated
-------------- ---------------- ---------------- ------- ------- ------------
Revenue 5,660 635 324 - 6,619
Gross Profit 2,200 162 88 - 2,450
Gross Margin 39% 26% 27% 0% 37%
Profit/(Loss)
before tax 191 159 (46) (303) 1
Dividend
The Board does not propose to declare a final dividend for the
financial year ended 31 March 2019.
Principal Risks & Uncertainties
Supply of rare books, works on paper, prints and stamps and
other items
By definition, rare books and other works on paper, prints and
stamps are not commonly available. The availability of fresh stock
of such items onto the market is often driven by major life events,
such as inheritance, unrecovered debt, divorce or downsizing due to
economic malaise. The business of Shapero Rare Books, Scholium
Trading and Mayfair Philatelics is reliant upon individual works
and collections of works coming onto the market and upon the Group
being able to access those business opportunities. There is no
guarantee that fresh stock will come onto the market in sufficient
quantities to meet the Group's plans for continued growth, or that
third parties will choose to consign their items for sale at the
Group's auctions.
When works become available for sale or purchase, such sales are
often dealt with privately and discretely and, accordingly, there
is no guarantee that the Group's employees will be able to access
such business opportunities or to negotiate successfully the
purchase of fresh stock coming onto the market or successfully
compete for the mandate to auction such items.
Reliance on key international trade fairs
A significant proportion of the Group's sales are made at
international trade fairs, and in particular the major fairs. If
these fairs were to be discontinued it would have a material effect
on the ability of the Group to sell its stock. There are a limited
number of stands at international trade fairs and as a result
places are highly sought after. Whilst members of the Group have
been exhibiting at these fairs for many years, there can be no
certainty that they will continue to secure places in the
future.
Competition
The market in the books and other items in which the Group
trades is competitive. In the market for rare books and other items
in which Shapero Rare Books trades, the Group faces various
competitive pressures including from the major auctioneers,
Sotheby's, Christie's, Bonhams and Stanley Gibbons and Spink as
well as smaller auctioneers and a large number of dealers and
smaller operators.
The Group is likely to face continued and/or increased
competition in the future both from established competitors and/or
from new entrants to the market. The Group's competitors include
businesses with greater financial and other resources than the
Group. Such competitors may be in a better position than the Group
to compete for future business opportunities. If the Group is
unable to compete effectively in any of the markets in which it
operates, it could lead to material adverse effect on the Group's
business, financial condition, and operations.
Co-owned rare and collectible goods
In the case of high value items or collections, the Group will
often acquire the items jointly with another third party bookseller
or dealer and if not expressly provided for there is a risk that
the Group will not be able to sell the entire asset without the
agreement of all joint-owners. In this and other respects the Group
relies on the honesty and integrity of other dealers. Whilst the
Group takes care to deal only with established counterparties and
experienced dealers who are well known to senior management and/or
the Directors, there can be no guarantee that co-owners will comply
with the agreed terms (including, for example not changing the
items) or that such co-owners will not enter into administration or
other insolvency procedure, and in the event there is a loss of the
co-owned goods it is not certain that the Group could claim under
its insurance policy in relation thereto.
Stock valuation and liquidity
The Group will trade in rare and collectible items, which may be
highly illiquid. The value of goods acquired is difficult to assess
and it may not be possible for the Group to sell the assets at or
above the price for which they were acquired. The value of assets
in the balance sheet may not always represent the actual resale
value achievable.
Theft, loss or damage
Rare and collectible items are highly mobile goods. Furthermore,
such goods are frequently transported internationally for trade
shows or other marketing opportunities. Whilst precautions are
taken to ensure safe passage, the Group's assets may be lost,
damaged or stolen. While the Group carries specialist insurance,
there is no guarantee that the Group's insurance cover will be
adequate in all circumstances. Assets of the Group will be placed
with third parties for sale on commission. While the Group intends
to take appropriate precautions when placing assets with third
parties, there is a risk that these assets outside of the Group's
direct control may be stolen or replaced by unscrupulous third
parties with fakes or forgeries.
Authenticity and export authority
The Directors of the Group will ensure that due diligence is
undertaken on the authenticity of the assets acquired for sale.
Nonetheless fakes and forgeries do exist in the market and despite
due diligence the Group may acquire these believing them to be
authentic. Further, the attribution of works to a writer or artist
is not always an exact science, and there can be no guarantee that
assets of the Group will not have been mistakenly attributed in
this way. Lack of authenticity is not covered by the Group's
insurance. Whilst the Group takes appropriate care when acquiring
works which may be of material importance in the state of origin,
there can be no guarantee that works acquired by the Group are not
subject to restrictions on export or sale.
Insurance
The Group carries a specialist insurance policy under the
Antiquarian Booksellers Association Insurance Scheme which covers
each of the businesses. The Directors believe that the Group
carries appropriate insurance for a business of its size and nature
but there can be no guarantee that the extent or value of the cover
will be sufficient, in relation to stock in transit or on
consignment. The Directors review the Group's insurance
arrangements on an annual basis and endeavour to insure its stock
adequately, but there is no certainty that future claims will not
fall within the exclusions under the policy or that the insurer
will pay out any claim if made. Further, there can be no guarantee
that the necessary insurance will be available to the Group in the
future at an acceptable cost or at all.
Premises
Like many of the established dealers in the market, the Group
has a publicly accessible gallery in Mayfair, London from where
Shapero Rare Books and Mayfair Philatelics operate. Although there
is a risk that the increasing demand for online retail will render
'high street' premises uneconomic, the Directors believe that a
central London location is an important factor in the success of
the business as a whole.
Terms of sale
To date, the contractual arrangements which the Group has
entered into with clients, customers and other dealers have not
always included (amongst other things) terms dealing specifically
with
1. transfer of ownership and risk,
2. contract formation,
3. price and payment,
4. limitations and exclusions of liability, and
5. governing law and jurisdiction.
In light of the foregoing, there can be no guarantee that the
Group's arrangements with its customers will not be terminated on
short notice or that the Group will not at some future time face
challenges or disputes in relation to the contractual or other
arrangements with its clients.
If the Group became involved in a contractual dispute and/or a
third party was successful in any contractual dispute with the
Group, any resultant loss of revenues or exposure to litigation
costs or other claims could have a material adverse effect on the
Group's reputation, business, financial condition and/or operations
or financial results. The Group has revised its standard terms of
sale to seek to ensure that, henceforth, the arrangements with
clients, customers, dealers and others will include terms dealing
with each of the aforementioned areas.
Employees
The Group is reliant on a small group of key employees for their
knowledge and the reliance customers place on their integrity and
service. In the event that a key employee were to leave, the
business may suffer a short term decrease in performance whilst it
adjusts to the level of resources available to it.
Currency risk
The Directors anticipate that the Group will conduct certain of
its transactions other than in Pounds Sterling, the Group's
functional currency. As a result, movements in foreign exchange
rates may impact the Group's performance. The Group does not enter
into any contracts for any hedging arrangements in respect of
currency positions.
Future prospects
The Group now comprises three separate independent revenue
streams.
The core business of Shapero Rare Books is one of the leading
rare book dealers, with a solid international customer base.
Further attention will be required in order to improve its return
on capital employed, particularly stock turnover. The board has
implemented several initiatives to manage this.
Scholium Trading has an established position with several other
dealers, and In addition, the current stock includes some items
with potentially high levels of return. The board intends to
increase the capital available to this business, as the returns
over the last 24 months have been good.
Mayfair Philatelics now has a full year's auction programme in
place, and will require only modest further resources and premises
in due course to maximise the potential from these sales. This will
need to be managed to ensure the profitability of the business is
not adversely impacted.
The board has already announced its plans to review the
opportunity for making further cost savings, with a view to
improving the group's profitability and thereby creating improved
shareholder value.
Consolidated Statement of Comprehensive Income
Year ended Year ended
31 Mar 31 Mar
2019 2018
Restated
Note GBP000 GBP000
Revenue 3 7,137 6,619
Cost of Sales (4,346) (4,169)
Gross profit 2,791 2,450
----------- -----------
Distribution expenses (664) (512)
----------- -----------
Administrative expenses (2,128) (1,937)
Total administrative expenses (2,128) (1,937)
----------- -----------
(Loss)/ profit from operations (1) 1
Financial (expense)/ income (12) -
(Loss)/ profit before taxation (13) 1
Income tax credit/(expense) 7 - -
(Loss)/ profit for the year from continuing operations and total comprehensive
income attributable
to equity holders of the parent company (13) 1
----------- -----------
Basic and diluted (loss)/ profit per share:
From continuing operations - pence 8 (0.11) 0.00
Total diluted (loss)/ profit per share - pence (0.11) 0.00
----------- -----------
Consolidated Statement of Financial Position
31 Mar 31 Mar
2019 2018
Restated
Note GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 55 74
Intangible assets 9 16 -
Deferred corporation tax asset 11 277 277
348 351
------- ---------
Current assets
Inventories 12 8,657 8,841
Trade and other receivables 13 2,519 2,231
Cash and cash equivalents 192 216
11,368 11,288
------- ---------
Total assets 11,716 11,639
------- ---------
Current liabilities
Trade and other payables 1,805 1,715
Loans and borrowings - -
Current corporation tax liabilities - -
Total current liabilities 1,805 1,715
------- ---------
Total liabilities 1,805 1,715
------- ---------
Net assets/liabilities 9,911 9,924
------- ---------
Equity and liabilities
Equity attributable to owners of the parent
Ordinary shares 14 136 136
Share Premium 9,516 9,516
Merger reserve 82 82
Retained earnings 177 190
Total equity 9,911 9,924
------- ---------
Consolidated Statement of Changes in Equity
Share Share Merger Retained Total
Capital Premium reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- -------- --------- -------
Balance at 1 Apr 2016 136 9,516 82 413 10,147
(Loss) for the year from continued
and discontinued operations - - - (224) (224)
Total comprehensive income for
the period - - - (224) (224)
-------- -------- -------- --------- -------
Balance at 31 Mar 2017 136 9,516 82 189 9,923
Profit for the year from continued
and discontinued operations - - - 38 38
Total comprehensive income for
the period - - - 38 38
-------- -------- -------- --------- -------
Balance at 31 March 2018 136 9,516 82 227 9,961
(Loss) resulting from adoption
of IFRS 15 - - - (37) (37)
(see note 2: accounting policies)
Balance at 31 March 2018 restated 136 9,516 82 190 9,924
(Loss) for the year from continued
and discontinued operations - - - (13) (13)
Total comprehensive income for
the period - - - (13) (13)
-------- -------- -------- --------- -------
Balance at 31 March 2019 136 9,516 82 177 9,911
-------- -------- -------- --------- -------
There were no transactions with owners in the year.
The following describes the nature and purpose of each reserve within owners' equity:
Share capital Amount subscribed for shares at nominal value.
Share premium Amount subscribed for share capital in excess of nominal value less attributable share issue
expenses.
Merger reserve Amounts attributable to equity in respect of merged subsidiary undertakings.
Retained earnings Cumulative profit/(loss) of the Group attributable to equity shareholders.
Consolidated Statement of Cash Flows
31 Mar 31 Mar
2019 2018
Restated
GBP000 GBP000
Cash flows from operating activities
Profit/(loss) before tax (1) 1
Depreciation of property, plant and equipment 31 27
Amortisation of intangible assets 4 -
34 28
Decrease/(increase) in inventories 184 (968)
Decrease/(increase) in trade and other receivables (288) (151)
Increase/(decrease) in trade and other payables 90 383
Net cash generated from operating activities 20 (708)
------- ---------
Cash flows from investing activities
Purchase of property, plant and equipment (12) (46)
Purchase of intangible assets (20) -
Net cash used in investing activities (32) (46)
------- ---------
Cash flows from financing activities
Net cash (used)/generated from financing activities (12) -
------- ---------
Net increase/(decrease) in cash and cash equivalents (24) (754)
Cash and cash equivalents at the beginning of the year 216 970
Cash and cash equivalents at the end of the year 192 216
------- ---------
Company Statement of Financial Position
31 Mar 31 Mar
2019 2018
Note GBP000 GBP000
------- -------
Assets
Non-current assets
Group Investments 10 5,200 5,200
Deferred tax asset 108 108
5,308 5,308
------- -------
Current assets
Trade and other receivables 13 7,562 6,802
Cash and cash equivalents 9 -
7,571 6,802
------- -------
Total assets 12,879 12,110
------- -------
Current liabilities
Borrowings - 23
Trade and other payables 50 95
Current corporation tax liabilities - -
Total current liabilities 50 118
------- -------
Total liabilities 50 118
------- -------
Net assets/liabilities 12,829 11,992
------- -------
Equity and liabilities
Equity attributable to owners of the parent
Ordinary shares 14 136 136
Share Premium 9,516 9,516
Merger reserve 2,809 2,809
Retained earnings/(deficit) 368 (469)
Total equity 12,829 12,160
------- -------
Statement of Changes in Company Equity
Share Share Merger Retained Total
Capital Premium reserve deficit equity
GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- -------- --------- -------
Balance at 1 Apr 2016 136 9,516 2,809 (117) 12,344
(Loss) for the year - - - (184) (184)
Total comprehensive income for the period - - - (184) (184)
-------- -------- -------- --------- -------
Balance at 31 March 2017 136 9,516 2,809 (301) 12,160
-------- -------- -------- --------- -------
(Loss) for the year - - - (168) (168)
-------
Total comprehensive income for the period - - - (168) (168)
-------- -------- -------- --------- -------
Balance at 31 March 2018 136 9,516 2,809 (469) 11,992
Profit for the year - - - 837 837
Total comprehensive income for the period - - - 837 837
-------- -------- -------- --------- -------
Balance at 31 March 2019 136 9,516 2,809 368 12,829
-------- -------- -------- --------- -------
The following describes the nature and purpose of each reserve within owners' equity:
Share capital Amount subscribed for shares at nominal value.
Share premium Amount subscribed for share capital in excess of nominal value less attributable share-issue
expenses.
issue expenses.
Merger reserve Amounts attributable to equity in respect of merged subsidiary undertakings.
Retained earnings Cumulative profit/(loss) of the Group attributable to equity shareholders.
Company Cashflow
31 Mar 31 Mar
2019 2018
GBP000 GBP000
Cash flows from operating activities
(Loss)/profit before tax (204) (214)
(204) (214)
(Increase) in trade and other receivables (760) (278)
(Decrease)/increase in trade and other payables (45) 17
Net cash generated from operating activities (1,009) (475)
-------- -------
Cash flows from investing activities
Dividends receivable from subsidiary undertakings 1,041 -
Net cash generated from investing activities 1,041 -
-------- -------
Cash flows from financing activities
Net cash (used)/generated from financing activities - -
-------- -------
Net increase/(decrease) in cash and cash equivalents 32 (475)
Cash and cash equivalents at the beginning of the year (23) 452
Cash and cash equivalents at the end of the year 9 (23)
-------- -------
Notes to the Consolidated Financial Statements
1 General information
Scholium Group plc and its subsidiaries (together 'the Group')
are engaged in the trading and retailing of rare books, works on
paper and stamps primarily in the United Kingdom. The Company is a
public company domiciled and incorporated in England and Wales
(registered number 08833975). The address of its registered office
is 32 St George Street, London W1S 2EA.
2 Basis of preparation and accounting policies
The consolidated financial information, which represents the
results of the Company and its subsidiaries, has been prepared in
accordance with International Financial Reporting Standards and
IFRC Interpretations issued by the International Accounting
Standards Board (together "IFRSs") as adopted by the European Union
(EU) and as applied in accordance with the provisions of the
Companies Act 2006. The Company financial statements have also been
prepared in accordance with IFRSs.
The consolidated and Company financial statements have been
prepared on an historical cost basis.
3 Revenue
31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
Sales of Stock 6,736 6,455
Commissions 370 156
Other income 31 8
7,137 6,619
------- -------
All revenues are derived from a single operating segment,
collectibles.
4 (Loss)/ profit Before Taxation
(Loss)/profit before taxation is after charging/(crediting): 31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
Depreciation of property, plant and equipment 31 26
Amortisation of intangible assets 4 -
Operating lease rentals 321 320
Foreign currency losses 8 8
Employee costs (note 5) 1,000 888
Fees payable to the Company's auditors 38 37
5 Employee costs including Directors
31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
Wages 890 776
Social security costs 67 76
Pension costs 31 26
Other employee benefits 12 10
1,000 888
------- -------
All employee costs are included in administrative expenses.
Defined contribution pension schemes.
The Group operates defined contribution retirement benefit
schemes for qualifying employees. The total cost charged to income
of GBP31k (2018: GBP26k) represents contributions payable to those
schemes by the Group at rates specified in the rules of the plans.
As at 31 March 2019, contributions due in respect of the current
reporting period of GBP3k (2018: GBP2k) had not been paid over to
the schemes and are included within payables.
6 Directors' remuneration
31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
Salaries and fees 177 182
Social security costs 8 8
Pension costs 1 1
Other employee benefits 5 4
191 195
------- -------
Information regarding the highest paid Director which comprises
salary and benefits as follows 70 60
------- -------
Simon Southwood, who resigned on 1 August 2017, received GBPnil
compensation for loss of office in the year to 31 March 2019 (2018
- GBP11,000).
7 Income tax
31 Mar 31 Mar
2019 2018
GBP000 GBP000
Current tax (credit)/expense
Current tax - -
Deferred tax - -
Impact of change in UK Corporation tax rate - -
Origination and reversal of temporary differences - -
Total tax expense - -
--------- ---------
The charge for the year can be reconciled to the profit/(loss) per the income statement as
follows:
31 Mar 31 Mar
2019 2018
GBP000 GBP000
(Loss)/ profit before tax (13) 1
--------- ---------
Applied corporation tax rates: 19% 19%
Tax at the UK corporation tax rate of 19% (2018: 20%): (2) -
Expenses not deductible for tax purposes - -
Utilisation of previously unrecognised tax losses - 15
Origination and reversal of temporary differences 2 (15)
Current tax charge - -
--------- ---------
8 (Loss)/ profit per share
31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
(Loss)/ profit used in calculating basic and diluted
earnings per share attributable to the owners
of the parent (13) 1
Number of shares
Weighted average number of shares for the purpose
of basic and diluted earnings per share 13.6m 13.6m
------- -------
Basic (loss)/ earnings per share from continuing
operations (pence per share) (0.11) 0.00
Total basic and diluted (loss)/ earnings
per share - pence (0.11) 0.00
------- -------
All shares shown above are authorised, issued and fully paid up.
Ordinary shares carry the right to one vote per share at general
meetings of the Company and the rights to share in any distribution
of profits or returns of capital and to share in any residual
assets available for distribution in the event of a winding up.
9 Intangible Assets
31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
Balance at the beginning of the year - -
Additions at cost 20 -
Amortisation (4) -
____ ____
Balance at the end of the year 16 -
The intangible assets comprise a mailing list.
10 Investment in subsidiaries
31 Mar
2019
Company
GBP000
At 7 January 2014
Nominal value of shares issued 28
Fair-value adjustment take to merger reserve 2,809
Deferred consideration 2,363
At 31 March 2016, 31 March 2017, 31 March 2018 and 31 March 2019 5,200
----------
The investments in Group undertakings are recorded at cost which is the fair-value of the
consideration paid.
The principal subsidiaries of the Company, all of which have been included in the consolidated
financial information, are as follows: Shapero Rare Books Ltd, Scholium Trading Ltd and Mayfair
Philatelics Ltd, all of which are wholly owned.
11 Deferred Corporation Tax
31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
Balance at the beginning of the year 277 277
Income statement - -
____ ____
Balance at the end of the year 277 277
The deferred tax asset comprises:
Origination and reversal of temporary differences 277 277
Deferred tax is calculated in full on temporary differences
under the liability method using the tax rates expected for future
periods of 19%. The deferred tax has arisen due to the availability
of trading losses. The Group has unutilised tax allowances, at
expected tax rates in future periods, of GBP383,000 (2018:
GBP370,000) of which GBP277,000 has been recognised (2018:
GBP277,000 recognised).
A review has been carried out of the Group's ability to generate
future profits which has concluded that it is appropriate to
continue to recognise this deferred tax asset. As part of this
review, it was also concluded that the management charges levied by
the Company should be increased in future years to reflect more
fully the costs attributable and services provided to the Group's
subsidiaries.
12 Inventories
31 Mar 31 Mar
2019 2018
Group Group
GBP000 GBP000
Finished goods 8,657 8,841
Finished goods expensed in the year 3,991 4,418
------- -------
13 Trade & other receivables
31 Mar 31 Mar 31 Mar 31 Mar
2019 2018 2019 2018
Group Group Company Company
GBP000 GBP000 GBP000 GBP000
Trade debtors 2,308 1,962 - -
Other debtors 28 20 2 5
Amounts due from Group undertaking - - 7,560 6,797
Prepayments and accrued income 183 249 - -
2,519 2,231 7,562 6,802
------- ------- -------- --------
The age profile of trade and other receivables comprise: GBP000
Current 1,144
One month past due 318
Two months past due 127
Over three months past due 719
Provision for doubtful debts -
2,308
----------
As at 31 March 2019, trade receivables of GBPnil (31 March 2018 GBPnil, 31 March 2017 GBPnil,
31 March 2016 GBPnil) were considered past due and impaired. The other debtors balances are
categorised as loans and receivables. All amounts shown under trade and receivables are due
for payment within one year. Some receivables will be settled against trade payables in due
course.
Amounts due from Group undertakings are unsecured,
interest-free, have no fixed date of repayment and are repayable on
demand.
14 Share Capital
31 Mar 31 Mar
2019 2018
Group and Company Group and Company
GBP000 GBP000
Ordinary shares of GBP0.01 each
At the beginning of the year 136 136
Issued in the year - -
------------------ ------------------
At the end of the year 136 136
------------------ ------------------
Number of shares 31 Mar 31 Mar
2019 2018
Group and Company Group and Company
Ordinary shares of GBP0.01 each Number Number
At the beginning of the year 13,600,000 13,600,000
Issued in the year - -
At the end of the year 13,600,000 13,600,000
------------------ ------------------
All shares shown above are authorised, issued and fully paid up.
Ordinary shares carry the right to one vote per share at general
meetings of the Company and the rights to share in any distribution
of profits or returns of capital and to share in any residual
assets available for distribution in the event of a winding up.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR BLGDRUSDBGCS
(END) Dow Jones Newswires
July 25, 2019 02:00 ET (06:00 GMT)
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