First Sentinel Plc - Interim Results PR Newswire

This announcement contains inside information for the purposes of the Market Abuse Regulation (EU No. 596/2014) (“MAR”). Upon the publication of this announcement, this inside information is now considered to be in the public domain and shall therefore cease to be inside information.

First Sentinel Plc - Interim Results


30 September 2020

First Sentinel Plc
(“First Sentinel” or the “Company”)

Interim results for the period ended 30 June 2020

First Sentinel is pleased to announce its interim accounts for the six months ended 30 June 2020 (the “Interim Accounts”). Extracts of the Interim Accounts are set out at https://first-sentinel.com.

The Chairman's Report

I present the results for First Sentinel plc for the six months ended 30 June 2020. These have been challenging times but, despite the outbreak of the Covid-19 pandemic in the first months of 2020, I am delighted to report that First Sentinel has been able to mobilise its staff to work from home with very little disruption to our business. Since the effects of the pandemic took hold, we have adapted our strategy in order to focus on resilient industries.

Between January and June 2020, First Sentinel raised £1,734,426 and deployed the proceeds on a number of loan facilities and on its UK supply chain finance business via its subsidiary, Capable Finance Limited. First Sentinel’s Australian subsidiary, Perennial Enterprise PTY Ltd, continues to progress well and its robust capital deployment strategy has kept its financial results immune from the effects of the pandemic. In addition, the Company has made equity investments (Stabilitech, now renamed iosBio, and Vulcan Industries) which have contributed to increasing value to our shareholders.

Our strategy during the first 6 months of 2020 has proved successful and I am pleased to report a profit of 1.12p per share (YE 2019: loss of 4.24p per share). In the next 6 months, we intend to enhance the Group’s focus on our UK invoice purchasing and supply chain finance activities whilst taking advantage of equity investment opportunities that are aligned with our risk profile and investment strategy.

Outlook

The six months to 30 June 2020 have continued to be a very successful period for First Sentinel. The success of the fund raising, investments made and the establishment of supply chain finance operations in the UK has positioned the Group very well for the next stage of its development. Our short-term strategy remains at increasing value by providing growth capital for public and private company investments and, in particular, by significantly growing the invoice purchasing activities in Australia and the supply chain finance operations in the UK. I am very optimistic about the Group’s growth potential and we look to the future with significant confidence.

About First Sentinel plc

First Sentinel PLC provides debt financing solutions for small to medium-sized businesses primarily through its supply chain finance and invoice purchasing activities. First Sentinel also invests in a range of secured and unsecured equity and debt instruments in private and public companies.

The Company’s website is https://first-sentinel.com 

For further corporate information, please contact:

Mr. Brian Stockbridge
CEO
First Sentinel Plc
Tel: + 44 (0) 7876 888 011

AQSE Corporate Advisor
Beaumont Cornish Limited
James Biddle / Roland Cornish
Tel: +44(0)20 7628 3396

-END-



 

Interim Condensed Statement of Comprehensive Income




Notes
6 months Ended
30 June
2020
Unaudited
6 months Ended
30 June
2019
Unaudited
Year ended 31 December 2019
Audited
£’000 £’000 £’000
Revenue 1,199 710 1,440
Cost of sales - (185) (89)
Gross profit 1,199 525 1,351
Administrative expenses 4 (678) (591) (1,534)
Other Income - 21 33
Operating profit / (loss) 521 (45) (150)
Finance Costs (249) (326) (587)
Finance Income - 257 33
Profit / (loss) on ordinary activities before taxation 272 (114) (704)
Tax on loss on ordinary activities - (24) (63)
Profit / (loss) after taxation 272 (137) (767)
Other comprehensive income - - -
Total comprehensive profit / (loss) for the period 272 (137) (767)
Profit / (loss) and total comprehensive attributable
the owners of the company 205 (137) (855)
Non-controlling interests 67 - 88
272 (137) (767)
Basic and diluted Profit / (loss) per share (expressed in pence per share) 5 1.12p (0.90p) (4.24p)



Interim Condensed Statement of Changes in Equity

Share  Capital Share Premium Accumulated Deficit Preference Share Equity Component Share Based Payment
Reserve
Non-Controlling interest Foreign Exchange Reserve Total Equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 30 June 2019 152 1,449 (1,092) - 26 154 (113) 576
Issue of shares 61 648 - - - - - 709
Share based payments charge - - - - 105 - - 105
Non-controlling interest - - - - - 92 - 92
Foreign Exchange Difference - - - - - - (134) (134)
Loss and total comprehensive loss for the period - - (717) - - - - (717)
Balance at 31 December 2019 213 2,097 (1,809) - 131 245 (245) 632
Issue of shares 50 1,021 - 41 - - - 1,112
Non-Controlling Interest - - - - - (229) - (229)
Share based payments charge - - - - 84 - - 84
Foreign Exchange Difference - - 104 - - - 196 300
Loss and total comprehensive loss for the period 205 - - 67  - 272
Balance at 30 June 2020 263 3,118 (1,500) 41 215 83 49 2,171

Share capital is the amount subscribed for shares at nominal value.
Share premium is the amount subscribed for shares in excess of nominal value.
Accumulated deficit represents the cumulative loss of the Group attributable to equity shareholders.



Interim Condensed Statement of the Financial Position


Notes
6 months Ended
30 June
2020
Unaudited
6 months Ended
30 June
2019
Unaudited
Year ended 31 December 2019
Audited
£’000 £’000 £’000
Assets
Non-Current Assets
Intangible Assets 51 51 48
Goodwill 88 88 88
Property, Plant & equipment 189 79 54
Right of use Asset 198 - 131
Total non-Current Assets 526 218 321
Current assets
Trade Receivables 6,136 5,112 5,730
Other Receivables - 9 -
Other financial assets 6 2,072 662 242
Cash and Cash Equivalents 741 1,790 1,255
 Total Current Assets 8,950 7,573 7,228
Total Assets 9,476 7,791 7,549
Equity and Liabilities
Share Capital 7 263 152 213
Share Premium 7 3,118 1,449 2,097
Preference share equity component 41 - -
Share based payment reserve 215 26 131
Non-controlling interest 83 154 245
Foreign Exchange reserve (49) (113) (245)
Accumulated deficit (1,500) (1,092) (1,809)
Total Equity 2,171 576 632
Current Liabilities
Trade Payables 205 1,383 114
Short term lease liabilities 202 - 31
Borrowings 1,840 - 1,944
Other Payables 14 145 170
Total Current Liabilities 2,261 1,528 2,259
Non-current Liabilities
Borrowings 5,044 5,687 4,530
Other Payables - - 128
Total non-current Liabilities 5,044 5,687 4,658
Total Liabilities 7,305 7,215 6,917
Total Equity and Liabilities 9,476 7,791 7,549



Interim Condensed Cash Flow Statement




Notes
6 months Ended
30 June
2020
Unaudited
6 Months Ended
30 June 2019
Unaudited
Year ended
31 December 2019
Audited
£’000 £’000 £’000
Cash flows from operating activities
Operating profit/(loss) 521 (45) (150)
Changes in working capital
(Increase) / decrease in receivables (406) (843) (1,514)
Increase / (decrease) in payables (2) 1,142 (143)
Other adjustments - (172) -
Depreciation 22 - 113
Fair value adjustments (431) - 156
Share based payment 84 - 105
Interest Received - (257) 33
Interest elements of lease payments - - (10)
Interest Paid (249) - (577)
Net cash flow from operating activities (461) (175) (1,987)
Investing Activities
Acquisition of subsidiary 6 - - (50)
Net Proceeds from transactions of financial assets at fair value through profit or loss (1,399) 150 239
Purchases of property, plant and equipment (135) - (41)
Net cash flow from investing activities (1,534) 150 148
Cash flows from financing activities:
Net proceeds from issue of shares 7 1,071 - 709
Net Proceeds from issue of financial liabilities at amortised cost – loans (104) - 10
Net Proceeds from issue of financial liabilities at amortised cost – bonds 514 965 1,742
Principal elements of lease payments - - (97)
Net cash flow from financing activities 1,481 965 2,364
Taxation - 24 (96)
Net cash flow for the period (514) 964 429
Opening Cash and cash equivalents 1,255 826 826
Closing Cash and cash equivalents 741 1,790 1,255



Notes to the Interim Condensed Financial Statements

1.         General Information

First Sentinel plc (‘the Company’) is a trading company incorporated in the United Kingdom with company number 10183367 and quoted on the AQSE Exchange Growth Market.

2.         Basis of Preparation

The annual financial statements of the Company and its subsidiaries (together referred to as the “Group”) are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’, as adopted by the European Union. The accounting policies and methods of computation used are consistent with those used in the Group’s latest audited financial statements for the year ended 31 December 2019.

A copy of the statutory accounts for the year ended 31 December 2019 has been delivered to the Registrar of Companies. The auditor’s report on these accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

3.            Segmental Reporting

The Group’s management has determined the operating segments based on the reports reviewed by the executive directors that are used to make strategic decisions. They consider the business from a geographical perspective and the group has two reportable segments, the UK and Australia. The Group’s main lines of business are that of making investments and invoice purchasing.

For the period ended 30 June 2020: UK Australia Total
£’000 £’000 £’000
Segment revenue and results
Reportable revenue 688 511 1,199
Revenue from external customers 688 511 799
Cost of Sales - - -
Unallocated corporate income and expenses (218) (438) (656)
Depreciation (22) - (22)
Interest expense (5) (244) (249)
Interest Income - - -
Tax expense - - -
Intersegment revenues/costs (186) 186 -
Profit/(Loss) 257 15 272
Segment assets and liabilities
Reportable segment assets 7,624 5,974 13,598
Intersegment eliminations (4,210) - (4,210)
Goodwill 88
Consolidated total assets 9,476
Reportable segment liabilities 5,395 5,485 10,880
Intersegment eliminations - (3,575) (3,575)
Consolidated total liabilities 7,305
For the period ended 31 December 2019: UK Australia Total
£’000 £’000 £’000
Segment revenue and results
Reportable revenue (104) 1,544 1,440
Revenue from external customers (104) 1,544 1,440
Cost of Sales - (89) (89)
Other income - 33 33
Unallocated corporate income and expenses (932) (490) (1,422)
Depreciation and amortisation (66) (47) (113)
Interest expense (350) (236) (586)
Interest Income 32 1 33
Tax expense - (63) (63)
Intersegment revenues/costs 464 (464) -
Loss (956) 189 (767)
Segment assets and liabilities
Reportable segment assets 5,547 6,039 11,586
Intersegment eliminations (4,125) - (4,125)
Goodwill 88
Consolidated total assets 7,549
Reportable segment liabilities 5,069 5,583 10,652
Intersegment eliminations - (3,735) (3,735)
Consolidated total liabilities 6,917
For the period ended 30 June 2019: UK Australia Total
£’000 £’000 £’000
Segment revenue and results
Reportable revenue 32 678 710
Revenue from external customers 32 678 710
Cost of Sales - - -
Unallocated corporate income and expenses (321) (259) (580)
Tax expense - (24) (24)
Loss 105
Segment assets and liabilities
Reportable segment assets 4,497 3,122 7,617
Goodwill 92 92
Consolidated total assets 7,710
Reportable segment liabilities 4,174 2,996 7,170
Consolidated total liabilities 7,170
Other segment information
Interest expense (152) (359) (511)
Interest income 251 7 257
Depreciation - - -

4.         Group Result for the period

The current period operating loss incorporated the following main items:

6 months Ended
30 June
2020
Unaudited
6 Months Ended              30 June 2019
Unaudited
Year ended 31 December 2019
Audited
£’000 £’000 £’000
Directors’ remuneration and fees 53 152 477
Legal and professional fees 26 49 136
Other expenses 599 390 921
678 591 1,534

5.         Profit / Loss per Share

Profit / Loss per share data is based on the Group result for the six months and the weighted average number of shares in issue.

Basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period:

                                  6 months Ended
30 June
2020
Unaudited
6 Months Ended              30 June 2019
Unaudited
Year ended 31 December 2019
Audited
£ £ £
Profit/(loss) after tax 272,000 (137,000) (767,000)
Weighted average number of ordinary shares in issue 24,224,324 15,228,089 18,073,929
Basic and diluted Profit/(loss) per share (pence) 1.12p (0.90p) (4.24p)

Basic and diluted earnings per share are the same, since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. There were 26,324,316 potential dilutive shares in issue during the period for share options and warrants.

6.         Financial assets

During the period the Group had the following movements in investments:

                                  30 June
2020
Unaudited
At               30 June 2019
Unaudited

Year ended 31 December 2019
Audited
£’000 £’000 £’000
Secured loan notes - 222 -
Financial assets through profit and loss 2,072 440 242
Total financial assets 2,072 662 242

7.         Share Capital

Ordinary shares are classified as equity. Proceeds from issuance of ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against share capital.

Allotted, called up and fully paid ordinary shares of 0.01p each Number of shares Share
Capital
Share Premium
£ £
Balance at 17 May 2016 100 1 -
Balance at 30 June 2016 100 1 -
Share issue at £0.10 – 15 March 2017 6,309,794 63,098 511,233
Share issue at £0.10 – 24 March 2017 50,000 500 4,500
Share issue at £0.10 – 18 April 2017 727,273 7,273 72,727
Balance at 30 June 2019 15,246,770 152,467 1,448,340
Share issue at £0.14 – 05 August 2019 421,429 4,214 54,786
Share issue at £0.15 – 23 September 2019 1,666,667 16,667 233,333
Share issue at £0.10 – 25 October 2019 4,000,000 40,000 360,000
Balance at 31 December 2019 21,334,866 213,349 2,097,119
Share issue at £0.010 – 24 January 2020 815,462 8,155 212,020
Share issue at £0.010 – 11 March 2020 914,535 9,145 173,762
Share issue at £0.010 – 19 March 2020 1,944,810 19,448 369,514
Share issue at £0.010 – 23 April 2020 757,500 7,575 143,925
Share issue at £0.010 – 04 June 2020 557,143 5,571 111,428
Balance at 30 June 2020 26,324,316 263,243 3,107,768

8.         Events Subsequent to 30 June 2020

After the period end the Company has raised £200,000 from the initial tranches of Green Finance Preference Shares issued.

On the 28 August 2020 the company raised £179,077 by issuing 179,077 bonds

-END-