INTOSOL Holdings Plc / Ticker: INTO /
Index: LSE / Sector: Travel & Leisure
30 October 2019
INTOSOL Holdings
Plc (‘INTOSOL’ or the ‘Company’)
Interim
results
INTOSOL Holdings Plc, the award-winning international luxury
travel company, is pleased to announce its Interim Results for the
six months ended 31 July 2019.
Chairman’s Statement
INTOSOL is an award winning, luxury travel company providing
bespoke and unique holiday experiences globally. We are
focussed on growing our luxury travel experience and hotel property
portfolio with a robust, low-cost and scalable business model.
Since the beginning of the financial year, we have been
delivering our strategy of restructuring and growing the SOUL
Private Collection of owned and managed boutique hotels in
South Africa, increasing margins
and building our international client base.
In the first half of the financial year, from 1 February to
31 July 2019, there were only two
months in the high season (February and March), as well as a
general stagnation in the tourism markets - despite this I am
pleased to announce that INTOSOL Holdings PLC had a
profitable outcome for the period.
During the period we added new revenue streams, for example
marketing of events and incentive travel, which helped enhance our
gross margin. Furthermore, the traditional travel design business
achieved a better gross margin through selling additional
experiences to customers during their travels. The SOUL Private
Collection experienced strong high season months (two of which fell
within the reporting period) with a significant increase in
short-term bookings.
On 29 May 2019, the Company
announced it had satisfied the payment of the first tranche of
€367,348.28 of the total consideration of €1,967,348.28, through
the issue of 938,735 new ordinary shares in the Company to Van
Zuijlekom Afrika Trust (the seller) in accordance with the
Agreement for the purchase of Oceans Wilderness (‘Oceans’), its
flagship nine-bedroom boutique hotel located in the Garden Route in
South Africa
(www.oceanswilderness.co.za).
Simultaneously, a significant cost reduction took place in both
operational companies in Germany
and South Africa, which brought
the operational side of the business to greater efficiency in
management structures and better cost control. The cost reduction
was achieved through a reorganisation of the marketing department
and the implementation of a more efficient marketing strategy
including strong reduction of marketing costs as well as a slight
reduction of personnel costs throughout the company. I am
pleased to report that following the listing phase with its
associated extraordinary costs the Company has returned to
profitability.
INTOSOL Holdings PLC remains focused on building a global
lifestyle experience company that merges private travel and unique
experiences with hotel ownership. Our growth strategy is
underpinned by strong market fundamentals for high-end tourism,
with research showing, that luxury travel is growing twice as fast
as the overall market. With a portfolio of high-end, boutique
hotels, we are well positioned to take advantage of this.
Finally, I would like to thank all shareholders for their
continued support and we were pleased to receive further equity
from our base of existing shareholders. I am looking forward
to providing updates on our progress to accomplish our strategic
goals.
Rainer Spekowius
Unaudited condensed consolidated statement of profit and loss
and other comprehensive income
for the six months ended 31 July
2019
|
Note |
|
|
|
|
|
Unaudited
6 months ended
31 Jul 2019 |
Unaudited
6 months ended
31 Jul 2018 |
Audited
year
ended
31 Jan 2019 |
|
|
€ |
€ |
€ |
|
|
|
|
|
Revenue |
|
3,294,183 |
3,590,950 |
7,181,900 |
Cost of sales |
|
(2,358,013) |
(2,910,152) |
(5,820,304) |
Gross
profit |
|
936,170 |
680,798 |
1,361,596 |
|
|
|
|
|
Other
Income |
|
|
|
|
Own work
capitalised |
|
- |
17,838 |
35,675 |
Other operating
income |
|
238,293 |
112,820 |
225,639 |
Finance income |
|
339 |
4,980 |
9,959 |
|
|
|
|
|
Administrative
expenses |
|
(1,151,373) |
(1,591,354) |
(3,182,708) |
Operating
profit/(loss) |
|
23,429 |
(774,918) |
(1,549,839) |
|
|
|
|
|
Finance expense |
|
(91,718) |
(104,140) |
(208,277) |
Loss before
taxation |
|
(68,289) |
(879,058) |
(1,758,116) |
Taxation |
|
- |
- |
- |
Loss for the
period |
|
(68,289) |
(879,058) |
(1,758,116) |
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
Total other
comprehensive income/(expense) |
|
69,218 |
(19,764) |
(39,527) |
Total comprehensive
profit/(loss) for the period |
|
929 |
(898,822) |
(1,797,643) |
|
|
|
|
|
Total comprehensive
profit/(loss): |
|
|
|
|
Attributable to owners
of the parent |
|
929 |
(898,822) |
(1,797,643) |
|
|
|
|
|
Loss per share –
basic and diluted |
3 |
(0.01) |
(0.10) |
(0.17) |
|
|
|
|
|
The above unaudited condensed consolidated statement of profit
and loss and other comprehensive loss for the period relates to
continuing operations for the Group.
Unaudited condensed consolidated statement of financial
position
as at 31 July
2019
|
Note |
|
Unaudited
31 Jul 2019 |
Audited
31 Jan 2019 |
ASSETS |
|
|
€ |
€ |
Non-current
assets |
|
|
|
|
Receivables from
related parties |
|
|
1,316,651 |
1,298,693 |
Intangible assets |
|
|
45,338 |
70,066 |
Property, plant and
equipment |
|
|
2,547,120 |
719,111 |
Total non-current
assets |
|
|
3,909,109 |
2,087,870 |
|
|
|
|
|
Current
assets |
|
|
|
|
Trade and other
receivables |
|
|
1,883,796 |
1,330,738 |
Cash and cash
equivalents |
|
|
13,546 |
147,760 |
Inventories |
|
|
7,862 |
7,862 |
Deposits paid |
|
|
472,364 |
489,150 |
Receivables from
related parties |
|
|
982,312 |
1,088,497 |
Receivables from
related parties - Directors |
|
|
351,309 |
346,703 |
Prepayments and other
assets |
|
|
70,844 |
90,004 |
Total current
assets |
|
|
3,782,033 |
3,500,714 |
|
|
|
|
|
Total
assets |
|
|
7,691,142 |
5,588,584 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
Borrowings |
|
|
1,801,791 |
1,923,724 |
Total non-current
liabilities |
|
|
1,801,791 |
1,923,724 |
|
|
|
|
|
Current
liabilities |
|
|
|
|
Trade and other
payables |
|
|
4,001,734 |
2,237,931 |
Borrowings |
|
|
458,705 |
496,970 |
Provisions |
|
|
45,980 |
38,852 |
Other liabilities |
|
|
215,132 |
164,563 |
Total current
liabilities |
|
|
4,721,551 |
2,938,316 |
|
|
|
|
|
Total
liabilities |
|
|
6,523,342 |
4,862,040 |
Net
assets/(liabilities) |
|
|
1,167,800 |
726,544 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
4 |
|
1,450,712 |
1,304,953 |
Share premium
account |
|
|
3,109,027 |
2,814,459 |
Merger reserve |
|
|
(750,197) |
(750,197) |
Retained losses |
|
|
(2,655,689) |
(2,587,400) |
FX reserve |
|
|
13,947 |
(55,271) |
Total equity and
reserves |
|
|
1,167,800 |
726,544 |
|
|
|
|
|
The interim financial report was approved by the board of
Directors on 30 October 2019 and
signed on its behalf by:
Rainer Spekowius
Executive Chairman
of INTOSOL Holdings Plc
Unaudited condensed consolidated statement of changes in
equity
for the six months ended 31 July
2019
|
Share
capital |
Share
premium |
Merger
reserve |
FX reserve |
Retained losses |
Total
equity |
|
€ |
€ |
€ |
€ |
€ |
€ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 February 2019 |
1,304,953 |
2,814,459 |
(750,197) |
(55,271) |
(2,587,400) |
726,544 |
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
|
Loss for the
period |
- |
- |
- |
- |
(68,289) |
(68,289) |
Other comprehensive
income |
- |
- |
- |
69,218 |
- |
69,218 |
Total comprehensive
income for the period |
- |
- |
- |
69,218 |
(68,289) |
929 |
|
|
|
|
|
|
|
Transactions with
owners, in their capacity as owners |
|
|
|
|
|
|
Shares issued |
145,759 |
294,568 |
- |
- |
- |
440,327 |
Total other
transactions with owners |
145,759 |
294,568 |
- |
- |
- |
440,327 |
|
|
|
|
|
|
|
Balance as at 31 July 2019 |
1,450,712 |
3,109,027 |
(750,197) |
13,947 |
(2,655,689) |
1,167,800 |
Audited condensed consolidated statement of changes in
equity
for the year ended 31 January
2019
|
Share
capital |
Share
premium |
Merger
reserve |
FX reserve |
Retained losses |
Total
equity |
|
€ |
€ |
€ |
€ |
€ |
€ |
|
|
|
|
|
|
|
Balance as at 1 February 2018 |
975,712 |
- |
(750,197) |
(15,744) |
(829,284) |
(619,513) |
|
|
|
|
|
|
|
Comprehensive
income |
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
- |
(1,758,116) |
(1,758,116) |
Other comprehensive
loss |
- |
- |
- |
(39,527) |
- |
(39,527) |
Total comprehensive
expense for the year |
- |
- |
- |
(39,527) |
(1,758,116) |
(1,797,643) |
|
|
|
|
|
|
|
Transactions with
owners, in their capacity as owners |
|
|
|
|
|
|
Shares issued |
329,241 |
2,814,459 |
- |
- |
- |
3,143,700 |
Total
other transactions with owners |
329,241 |
2,814,459 |
- |
- |
- |
3,143,700 |
|
|
|
|
|
|
|
Balance as at 31 January 2019 |
1,304,953 |
2,814,459 |
(750,197) |
(55,271) |
(2,587,400) |
726,544 |
Unaudited condensed consolidated statement of cash flows
for the period ended 31 July 2019
|
|
6
months ended
31 Jul 2019 |
Year
ended 31 Jan
2019 |
|
|
€ |
€ |
Cash
flows from operating activities |
|
|
|
Loss
before taxation |
|
(68,289) |
(1,758,116) |
Adjustments for: |
|
|
|
Depreciation and amortisation |
|
61,902 |
224,842 |
Allowance
for impairment losses |
|
- |
346,412 |
Other
expenses/(income) |
|
- |
(35,544) |
|
|
(6,387) |
(1,222,406) |
Changes in working capital |
|
|
|
Decrease/(increase) in trade and other receivables |
|
(553,057) |
1,669,057 |
(Decrease)/increase in trade and other payables |
|
64,710 |
81,618 |
Cash
(used in)/generated from operations |
|
(494,734) |
528,269 |
|
|
|
|
Taxation
received |
|
- |
- |
Net
(cash used in)/generated by operations |
|
(494,734) |
528,269 |
|
|
|
|
Cash
flow from investing activities |
|
|
|
Purchase
of fixed assets |
|
- |
(38,335) |
Loans
repaid to related parties |
|
(63,604) |
- |
Loans to
related parties |
|
- |
(1,020,778) |
Net
cash used in investing activities |
|
(63,604) |
(1,059,113) |
|
|
|
|
Cash
flows from financing activities |
|
|
|
Proceeds
from issue of shares |
|
250,000 |
1,654,893 |
Proceeds
from shareholder loans |
|
100,000 |
- |
Loan
funds received |
|
- |
(740,840) |
Net
cash generated from financing activities |
|
350,000 |
914,053 |
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents in the period |
|
(208,338) |
343,209 |
Effect of
changes in foreign exchange rates |
|
74,124 |
(22,497) |
|
|
|
|
Cash
and cash equivalents at opening |
|
147,760 |
(172,952) |
|
|
|
|
Cash and cash equivalents at closing |
13,546 |
147,760 |
Notes to the consolidated interim financial
report
1.General information
The Company is a public limited company which is admitted to
trading on the Standard Segment of the Official List of the London
Stock Exchange and is incorporated and domiciled in the UK. The
address of the registered office is 201 Temple Chambers, 3-7 Temple
Avenue, London, EC4Y 0DT. The
registered number of the Company is 10806039.
The unaudited condensed consolidated interim financial report
consolidates those of the Company and its subsidiaries (together
the “Group”).
The 31 January 2019 ?gures in
these interim ?nancial statements are derived from the audited
Group's Financial Report for year ended 31
January 2019.
These interim ?nancial statements do not compromise statutory
?nancial statements within the meaning of section 434 of the
Companies Act 2006. Statutory ?nancial statements for the year
ended 31 January 2019 have been
delivered to the Registrar of Companies. These interim ?nancial
statements have not been audited and have not been reviewed by the
auditors.
2.Accounting polices
2.1Statement of compliance
The interim ?nancial statements comply with the recognition and
measurement criteria of International Financial Reporting Standards
as adopted by the European Union (EU-IFRSs), with IAS 34 Interim
Financial Reporting and with IFRS Interpretations Committee (IFRS
IC) interpretations.
The interim ?nancial statements were approved by the Board of
Directors on 30 October 2019.
2.2 Signi?cant accounting policies
The accounting policies applied by the Group in these interim
?nancial statements are consistent with those applied by the Group
in its Financial Report for year ended 31
January 2019, which were set out on pages 22 to 31 of the
annual report.
3.Loss per share
Basic and diluted
loss per share
The calculation of basic and diluted loss per share is based
upon the loss of €68,289 (2018: loss of €879,058) and the weighted
average number of ordinary shares in issue for the period of
11,755,540 (2018: 9,080,636).
4.Share capital and reserves
Allotted, called up
and fully paid |
|
|
Ordinary shares |
Share
capital |
Share
premium |
|
|
|
No. |
€ |
€ |
At 1 February
2018 |
|
|
8,615,101 |
975,712 |
- |
Shares issued during
the year |
|
|
2,870,517 |
329,241 |
2,814,459 |
As at 31 January
2019 |
|
|
11,485,618 |
1,304,953 |
2,814,459 |
|
|
|
|
|
|
Shares issued during
the period |
|
|
1,728,235 |
145,759 |
294,568 |
As at 31 July
2019 |
|
|
13,213,853 |
1,450,712 |
3,109,027 |
All ordinary shares are equally eligible to receive dividends
and the repayment of capital and represent equal votes at meetings
of shareholders.
5.Related party transactions
On 11 March 2019 the Company
received a loan of €100,000 from Ulrich Stöwer, a shareholder of
INTOSOL Holdings PLC. This loan remains outstanding at 31 July 2019.
On 14 March 2019, the Company
repaid the following loans from, RSP Beteiligungs GmbH, the company
of Rainer Spekowius: €25,000, originally received by the Company on
24 August 2017, and €38,604 which was
received on 31 December 2017.
On 29 May 2019 INTOSOL Holdings
Plc announced in accordance with the Agreement the purchase of
Oceans Wilderness (‘Oceans’), its flagship nine-bedroom boutique
hotel located in the Garden Route in South Africa (www.oceanswilderness.co.za),
that it has satisfied the payment of the first €367,348.28 tranche
of the total consideration of €1,967,348.28, through the issue of
938,735 new ordinary shares in the Company to Van Zuijlekom Afrika
Trust (the seller). RSP Beteiligungs GmbH, the company of Rainer
Spekowius, supported this transaction.
6.Post balance sheet events
There are no post balance sheet events to report.
For further information on INTOSOL visit the Company’s website
www.intosolholdingsplc.com or contact:
Rainer Spekowius
Executive Chairman INTOSOL
Holdings Plc Tel: +44 (0) 20 7236 1177
Claire Noyce
(Corporate
Broker) Hybridan
LLP Tel: +44 (0) 20 3764 2341
Notes
INTOSOL Holdings PLC is a London-listed international luxury travel
company that combines highly personalised travel design with
property ownership and management to provide high-end global travel
experiences. To improve margins, it is building its
SOUL Private Collection of leased and owned boutique properties,
and is in the process of purchasing and developing a number of
sites in South Africa including
Oceans Wilderness, a luxury nine-bedroom boutique hotel in the
Garden Route, and a commercial safari lodge in the renowned
Leadwood Big Game Estate, one of the premier locations to see
the so-called Big Five on safari (lion, leopard, rhinoceros,
elephant and Cape buffalo).
The SOUL Private Collection
INTOSOL’s SOUL Private Collection includes two properties in
Cape Town, South Africa: SOUL on
Llandudno
(www.soulonllandudno.co.za) and Penthouse on Beach
(www.penthouseonbeach.co.za).
The flagship property in the portfolio, Oceans Wilderness
(www.oceanswilderness.co.za), which reported a strong maiden
financial performance in its first year of operation, is located on
the Garden Route along with SOUL Rainbow’s End and SOUL on the
Heads. The Company also owns a site to build the Leadwood Safari
Lodge in the Leadwood Big Game Estate (www.leadwood.net), one of
the premier locations globally to see the Big Five in the wild.
INTOSOL Private Travel Design
The Private Travel Design division tailors bespoke and unique
experiences to a high-end client base which currently stands at
over 15,000. The division has a unique and growing network of over
3,500 hotel and agency partners worldwide.