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Eight Capital Ptnrs. - 2021 Interim Results
RNS Number : 2996N
Eight Capital Partners PLC
29 September 2021
 

29 September 2021

 

EIGHT CAPITAL PARTNERS PLC

("Eight Capital" "ECP" or the "Company")

 

UNAUDITED INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2021

Eight Capital Partners plc (AQSE: ECP), announces its interim results for the half year ending 30 June 2021.

Chairman's Interim Report

I report on the Company's interim results for the six months to 30 June 2021.

This report is being issued in the context of the Company's most recent announcement, released on 27 September, which highlights that it will henceforth change its status from being an investing company to being an operating group. In practical terms, this means that all future financial reporting will be made under IFRS reporting standards, consolidating the results and balance sheets of its 100% owned (and other future controlled) subsidiaries, rather than as a standalone company, applying the UK reporting standard FRS 102, which treats those subsidiaries as investments and incorporates the changes in their underlying value in the Company's income statement.

This report therefore, for the final time, presents Eight Capital as an investing company  quoted on the AQSE Growth Market.  Its stated objective has been to generate an attractive rate of return for shareholders, predominantly through capital appreciation, by taking advantage of opportunities principally to invest in the Technology, Media and Telecoms (TMT) and financial services sectors (including in other investment companies).

Since I last reported to you on the full year results to December 2020, the Company has continued to see the effects of the COVID-19 pandemic, however, a positive result for the period - an operating profit of £400,000 and a net profit after finance charges, of almost £300,000 - has been achieved. This was due to a number of factors, including the agreement reached to sell the Company's entire 28.7% holding in Finance Partners Group for €2.15 m (original investment €1.9 m), revenues from management services agreements and a reversal of some of the adverse currency movements that we suffered at the 2020 year-end.

We still expect our investments in Greencare Capital (CBD, wellness and medicinal cannabis) and Supply@ME Capital (monetisation of inventory) to give us a good return once they start fulfilling their business plans, at which point we will be seeking to exit. A similar strategy will be applied to Evrima plc (investor in mining operations - formerly Sports Capital Group) which reverted to mining following a foray into sports management, but whose shares are performing reasonably well.

Nevertheless, the immediate future will focus on deriving value from a) our two wholly-owned subsidiaries: Epsion Capital Ltd and Innovative Finance Srl (acquired 10 May 2021), two boutique corporate finance advisories with very different, complementary skill sets, and b) other tech led financial services lines of business that may be developed in the future.  That focus will be led by our new CEO, David Bull, leveraging the significant increase in the Group's balance sheet announced recently and the Company's absolute determination to be a strong player in the financial services technical revolution that we are now witnessing.

 

Dominic White

Chairman

 

The directors of the Company take responsibility for this announcement.

For further information, please contact:

Eight Capital Partners plc

+44 20 3808 0029

Dominic White - Executive Chairman

info@eight.capital                                      

David Bull - Chief Executive Officer

 

AQSE Exchange Growth Market Corporate Adviser

 

Cairn Financial Advisers LLP

+44 20 7213 0880

Jo Turner / James Lewis

 

 

 

Financial PR

 

Walbrook PR Limited

+44 20 7933 8780/+44 7768 807631

Paul Vann/Nicholas Johnson

Paul.vann@walbrookpr.com

 

 

Eight Capital Partners plc

Statement of Total Comprehensive Income

for the six months ended 30 June 2021

 

 

 

 

 

 

 

Administrative expenses

 

(174)

(363)

(537)

Foreign exchange gain/ (loss)

 

383

(116)

(180)

Net change in unrealised gains/ (losses) on investments at fair value through profit & loss

 

109

163

240

Other income

 

86

75

281

Operating Profit/ (Loss)

 

404

(241)

(196)

 

 

 

 

 

Interest income

 

-

4

22

Finance expense

 

(105)

(107)

(258)

 

 

 

 

 

Profit/ (Loss) before tax

 

299

(344)

(432)

 

 

 

 

 

Taxation

 

-

-

-

 

 

 

 

 

Profit/ (Loss) for the period 

 

299

(344)

(432)

 

 

 

 

 

Other comprehensive income for the year

 

-

-

-

 

 

 

 

 

Total comprehensive profit/ (loss)

 

299

(344)

(432)

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (pence):

2

          0.02 

          (0.04)

           (0.04)

Diluted earnings per share (pence):

2

0.02

-

-

 

 

 

 

 

 

*The results for the six-month period ending 30 June 2020 were restated to correct the error of consolidating the accounts of the investment held in Epsion Capital Limited. The results are restated to that of Eight Capital Partners plc only.

 

 

 

 

Eight Capital Partners plc

Statement of Financial Position at 30 June 2021

 

Note

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

164

158

153

Investments

3

5,091

4,143

3,179

Cash and cash equivalents

 

64

115

203

Total current assets

 

5,319

4,416

3,535

 

 

 

 

 

Total assets

 

5,319

4,416

3,535

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

123

140

120

Borrowings

 

391

363

436

Total current liabilities

 

514

503

556

 

Non-current liabilities

 

 

 

 

Long term bond

 

4,381

3,742

2,945

Total non-current liabilities

 

4,381

3,742

2,945

 

 

 

 

 

Total liabilities

 

4,895

4,245

3,501

 

 

 

 

 

Net assets

 

424

171

34

 

 

 

 

 

Equity

 

 

 

 

Share Capital

4

1,453

1,431

1,431

Share premium account

 

2,068

          2,001 

            2,001

Convertible loan notes

 

84

84

84

Share option and warrant reserve

 

13

8

        11

Retained earnings

 

(3,194)

(3,353)

     (3,493)

Total equity

 

424

171

34

 

 

*The results for the six-month period ending 30 June 2020 were restated to correct the error of consolidating the accounts of the investment held in Epsion Capital Limited. The results are restated to that of Eight Capital Partners plc only.

 

 

 

Eight Capital Partners plc

Statement of Changes in Equity

for the six months ended 30 June 2021

 

 

Share capital

Share premium

Share

option

& Warrant reserve

Convertible loan note

reserve

Retained earnings

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

As at 1 January 2019

1,350

1,891

8

48

(2,629)

668

Loss for the year

-

-

-

-

(432)

(432)

Other comprehensive income for the year

-

-

-

-

-

-

Total Comprehensive Income

-

-

-

-

(432)

(432)

Issue of shares

10

4

-

(14)

-

-

Issue of convertible loan notes

-

-

-

50

-

50

Total Transactions with Owners

10

4

-

36

-

50

As at 31 December 2019

1,360

1,895

8

84

(3,061)

286

Loss for the year

-

-

-

-

(432)

(432)

Other comprehensive income for the year

-

-

-

-

-

-

Total Comprehensive Income

-

-

-

-

(432)

(432)

Share based payment

-

-

3

-

-

3

Issue of shares

71

106

-

-

-

177

Total Transactions with Owners

71

106

3

-

-

180

As at 31 December 2020

1,431

2,001

11

84

(3,493)

34

Profit for the period

-

-

-

-

299

299

Other comprehensive income for the year

-

-

-

-

-

-

Total Comprehensive Income

-

-

-

-

299

299

Share based payment

-

-

2

-

-

2

Issue of shares

22

67

-

-

-

89

Total Transactions with Owners

22

67

2

-

-

91

As at 30 June 2021

1,453

2,068

13

84

(3,194)

424

 

 

 

 

Eight Capital Partners plc

Notes to the Interim Financial Statements

For the six months ended 30 June 2021

 

1.   Accounting policies

Basis of preparation

These interim financial statements have been prepared in accordance with the principles of applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102').

 

They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2020 audited annual report. The statutory financial statements for the year ended 31 December 2020 were prepared in accordance with FRS 102 and in accordance with the requirements of the Companies Act 2006. The auditors reported on those financial statements; their Audit Report was unqualified.

 

The interim financial information is unaudited, has not been reviewed by the Company's auditors and does not constitute statutory accounts as defined in the Companies Act 2006.

 

The interim financial information was approved and authorised for issue by the board of directors on

28 September 2021.

 

Going concern

As at the date of this report the Company had £420,000 of cash at bank and in transit after repaying a sizeable tranche of its short-term debt. It has revenues from management service agreements and interest income, a planned share placing in the 4th quarter and a significant liquidity event in the first quarter of 2022. It also has tacit financial support from its chairman.

 

The Directors are therefore of the opinion that the Company has adequate financial resources to enable it to continue in operation for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements.

 

Prior period correction

The results for the six-month period ending 30 June 2020 have been restated such that the accounts of the investment held in Epsion Capital Limited are not consolidated, and are therefore comparable with the current period results. The results are restated to that of Eight Capital Partners plc only.

 

2.   Profit or loss per share

 

 

Basic

 

 

 

 

Profit/ (Loss) for the period attributable to owners of the Company

 

299

 

            (344)

(432)

Weighted average number of shares:

 

1,400,739,856

796,642,433

1,069,696,174

Basic earnings/(loss) per share (pence):

 

         0.02

         (0.04)

(0.04)

 

 

 

 

 

Diluted

 

 

 

 

Profit/ (Loss) for the period attributable to owners of the Company

 

299

 

            (344)

(432)

Weighted average number of shares:

 

1,674,978,200

796,642,433

1,069,696,174

Diluted earnings/(loss) per share (pence):

 

        0.02

         (0.04)

(0.04)

 

The basic and diluted earnings per share were determined by dividing the profit or loss attributable to the equity holders of the Company by the weighted average number of shares outstanding during the periods.

 

3.   Investments

 

 

£'000

£'000

£'000

£'000

Quoted equity securities:

 

 

 

 

Supply@Me Capital plc

128

-

(43)

85

Greencare Capital plc

806

-

(25)

781

Evrima plc (formerly Sports Capital Group plc)

131

-

50

181

 

1,065

-

(18)

1,047

Unquoted equity securities:

 

 

 

 

Finance Partners Group SPA

1,701

-

142

1,843

Epsion Capital Limited

100

-

-

100

Innovative Finance Srl

313

1,803

(15)

2,101

 

2,114

1,803

127

4,044

 

 

 

 

 

Total investments

3,179

1,803

109

5,091

 

4.   Share capital

Movements in Ordinary share capital during the period are summarised below:

 

 

 

Number of Ordinary Shares of 0.01p

 Nominal value

 £'000

As at 31 December 2020

1,341,257,818

135

Issued during the period

223,057,644

22

As at 30 June 2021

1,564,315,462

157

 

In May 2021, 223,057,644 new ordinary shares were issued at 0.039p per share and admitted to trading on the AQSE Growth Market on 14 May 2021.

 

Movements in Deferred share capital are summarised below:

 

 

 

Number of Deferred Shares of 0.24p

 Nominal value

 £'000

As at 31 December 2020 and 30 June 2021

540,166,760

1,296

 

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