First Sentinel Plc - Half Year 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
(“First Sentinel” or the “Company”)
Interim results for the period ended 30 June 2019
 

First Sentinel is pleased to announce its interim accounts for the six months ended 30 June 2019.  
 

The interim accounts are set out below and a copy is available on the Company’s website, www.first-sentinel.com.
 

-END-
 

For further corporate information, please contact:
 

Mr. Brian Stockbridge
Chief Executive Officer
First Sentinel Plc
Tel: + 44 (0) 7876 888 011
Email: brian@first-sentinel.com

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



First Sentinel PLC

Interim report for the six months ended 30 June 2019

The Chairman’s Report

I am delighted to present the results for First Sentinel plc, for the six months ended 30 June 2019. The Group raised £1,210,545 to complete the £4m fundraise under its NEX listed bond, the proceeds of which were used to finance the invoice purchasing activities of our subsidiary in Australia, Perennial Enterprise PTY Ltd.  The business in Australia continues to progress well and First Sentinel plc voluntarily redeemed £550k of Bonds from investors after the period end which remain available for new investors.  During the period, First Sentinel plc also set up Capable Finance Limited as a 50.01% subsidiary to focus on UK supply chain finance activities.  The Group raised £0.8m shortly after the period end under a £7m Euronext listed bond to finance these activities and, additionally raised £309,000 in equity for investment and working capital purposes.  The loss of £137,000 for the period demonstrates that the business still needs to attract some scale and the directors believe that the progress made to date will position the group for further growth.

Outlook

The Six months to 30 June 2019 has 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. The Directors are very optimistic about the Group’s growth potential and we look to the future with significant confidence.




Interim Condensed Statement of Comprehensive Income


                              6 months Ended 6 months Ended Year ended 31
                                     30 June        30 June December 2018
                                        2019           2018       Audited
                       Notes       Unaudited      Unaudited

                                       £’000          £’000         £’000

Revenue                                  710            963         1,453

Cost of sales                          (185)          (403)         (503)

Gross profit                             525            560           950

Administrative           4             (591)          (515)       (1,381)
expenses

Other Income/                             21           (68)           134
(Losses)

Operating profit /                      (45)           (23)         (297)
(loss)

Finance Costs                          (326)           (23)         (611)

Finance Income                           257              -           298

Profit / (loss) on                     (114)           (46)         (610)
ordinary activities
before taxation

Tax on loss on                          (24)           (53)          (90)
ordinary activities

Profit / (loss) after                  (137)           (99)         (700)
taxation

Other comprehensive                        -              -             -
income

Total comprehensive                    (137)           (99)         (700)
profit / (loss) for
the period

Profit / (loss) and
total comprehensive
attributable

the owners of the                      (137)           (99)         (793)
company

Non-controlling                            -              -            93
interests

                                       (137)           (99)         (700)

Basic and diluted        5           (0.90p)        (0.71p)       (4.71p)
Profit / (loss) per
share (expressed in
pence per share)






Interim Condensed Statement of Changes in Equity


                  Share   Share Accumulated   Share Non-Controlling    Foreign  Total
                Capital Premium     Deficit   Based        interest   Exchange Equity
                                            Payment                 Difference

                  £’000   £’000       £’000   £’000           £’000      £’000  £’000

Balance at 30       151   1,444       (310)      13            (43)       (11)  1,244
June 2018

Issue of shares       1       -           -       -               -          -      1

Cost of issue         -       5           -       -               -          -      5
of shares

Share based           -       -           -      13               -          -     13
payment Reserve

Non-controlling       -       -           -       -             152          -   (68)
interest

Foreign               -       -           -       -               -      (100)    120
Exchange
Difference

Loss and total        -       -       (644)       -               -          -  (644)
comprehensive
loss for the
period

Balance at 31       152   1,449       (954)      26             109      (111)    671
December 2018

Issue of shares       -       -           -       -               -          -      -

Share issue           -       -           -       -               -          -      -
costs

Non-Controlling       -       -           -       -              45          -     45
Interest

Foreign               -       -           -       -               -        (2)    (2)
Exchange
Difference

Loss and total        -       -       (138)       -               -          -  (138)
comprehensive
loss for the
period

Balance at 30       152   1,449     (1,092)      26             154      (113)    576
June 2019



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


                           6 months Ended 6 months Ended Year ended 31 December
                     Notes        30 June        30 June                   2018
                                     2019           2018                Audited
                                Unaudited      Unaudited

                                    £’000          £’000                  £’000

Assets

Non-Current Assets

Intangible Asset                       51            145                     51

Property, Plant &                      79              5                     24
equipment

Goodwill                               88                                    88

Total non-Current                     218            150                    163
Assets

Current assets

Trade Receivables                   5,112          2,997                  4,279

Other Receivables                       9            203                      -

Other investment                        -             50                      -

Financial assets at    6              662          1,003                    584
fair value through
profit or loss

Cash and Cash                       1,790            805                    826
Equivalents

Total Current Assets                7,573          5,058                  5,689

Total Assets                        7,791          5,208                  5,852

Equity and
Liabilities

Share Capital          7              152            151                    152

Share Premium          7            1,449          1,444                  1,449

Share based payment                    26             13                     26
reserve

Non-controlling                       154           (43)                    109
interest

FX Reserve                          (113)           (11)                  (111)

Accumulated deficit               (1,092)          (310)                  (954)

Total Equity                          576          1,244                    671

Current Liabilities

Accounts Payable                    1,383              7                    252

Accruals                               31             36                     34

Directors Loan                         38             67                     57

Tax and other social                    -            110                    110
security

Borrowings                              -              -                      -

Other Payables                         76            212                      6

Total Current                       1,528            432                    459
Liabilities

Non-current
Liabilities

Borrowings                          5,687          3,532                  4,722

Total non-current                   5,687          3,532                  4,722
Liabilities

Total Liabilities                   7,215          3,964                  5,181

Total Equity and                    7,791          5,208                  5,852
Liabilities






Interim Condensed Cash Flow Statement


                                 6 months Ended 6 Months Ended       Year ended
                                        30 June   30 June 2018 31 December 2018
                                           2019      Unaudited          Audited
                     Notes            Unaudited

                                          £’000          £’000            £’000

Cash flows from
operating
activities

Operating                                  (45)           (23)            (297)
profit/(loss)

Changes in
working capital

(Increase) /                              (843)        (2,214)          (3,591)
decrease in
receivables

Increase /                                1,142          (204)               58
(decrease) in
payables

Other                                     (172)              -                -
adjustments

Depreciation                                  -              5                5

Fair value                                    -             68              292
adjustments

Share based                                   -             75               88
payment

Interest                                  (257)              -              298
Received

Interest Paid                                 -           (23)            (611)

Net cash flow                             (175)        (2,316)          (3,758)
from operating
activities

Investing Activities

Decrease / (Increase) in                    150          (137)              (2)
financial assets

Acquisition of subsidiary      6              -              -                -

Net Proceeds from transactions                -              -              304
of financial assets at fair
value through profit or loss

Decrease / (Increase) in Loans 6              -              -                -

Net cash flow from investing                150          (137)              302
activities

Cash flows from financing
activities:

Net proceeds from issue of     7              -            144               64
shares

Net Proceeds from issue of                    -              -            2,788
financial liabilities at
amortised cost – bonds

Increase / (repayments) of                  965          2,817            1,223
Loans

Net cash flow from financing                965          2,961            4,075
activities

Taxation                                     24              -             (90)

Net cash flow for the period                964            508              529

Opening Cash and cash                       826            297              297
equivalents

Closing Cash and cash                     1,790            805              826
equivalents






Notes to the Interim Condensed Financial Statements
 

1.         General Information

First Sentinel plc (‘the Company’) is an investment company incorporated in the United Kingdom with company number 10183367 and quoted on the NEX 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 2018.

A copy of the statutory accounts for the year ended 31 December 2018 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 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)

Profit/(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                                    -         -       -



For the period ended 31 December 2018:         UK Australia   Total

                                            £’000     £’000   £’000

Segment revenue and results

Reportable revenue                          (192)     1,645   1,453

Revenue from external customers             (192)     1,645   1,453

Cost of Sales                                   -     (503)   (503)

Unallocated corporate income and expenses   (918)     (326) (1,244)

Tax expense                                     -      (90)    (90)

Loss                                      (1,110)       726   (384)

Segment assets and liabilities

Reportable segment assets                     891     4,874   5,764

Goodwill                                                         88

Consolidated total assets                                     5,852

Reportable segment liabilities              2,869     2,312   5,181

Consolidated total liabilities                                5,181

Other segment information

Interest expense                            (141)     (470)   (611)

Interest Income                               298         -     298

Depreciation                                    -       (3)     (3)

For the period ended 30 June 2018:             UK Australia   Total

                                            £’000     £’000   £’000

Segment revenue and results

Reportable revenue                             42       921     963

Revenue from external customers                42       921     963

Cost of Sales                                   -     (403)   (403)

Unallocated corporate income and expenses   (231)     (375)   (606)

Tax expense                                     -      (53)    (53)

Loss                                                           (99)

Segment assets and liabilities

Reportable segment assets                   1,182     3,934   5,116

Goodwill                                                         92

Consolidated total assets                                     5,208

Reportable segment liabilities              1,708     2,256   3,964

Consolidated total liabilities                                3,964

Other segment information

Interest expense                               21         2      23

Depreciation                                    -         4       4




4.         Group Result for the period

The current period operating loss incorporated the following main items:


                                 6 months Ended 6 Months Ended       Year ended
                                        30 June   30 June 2018 31 December 2018
                                           2019      Unaudited          Audited
                                      Unaudited

                                          £’000          £’000            £’000

Accounting and administration                17             36               63
fees

Foreign exchange debits                       -              1                4

Directors’ remuneration and fees            152             61              385

Legal and professional fees                  49            112              179

Other expenses                              373            305              750

                                            591            515            1,381



5.         Loss per Share

Loss per share data is based on the Group result for the nine 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 6 Months Ended Year ended 31 December
                                  30 June   30 June 2018                   2018
                                     2019      Unaudited                Audited
                                Unaudited

                                 £              £                  £

Profit/(loss) after tax         (137,000)       (99,000)              (699,967)

Weighted average number of     15,228,089      13,992690             14,876,326
ordinary shares in issue

Basic and diluted Profit/         (0.90p)        (0.71p)                (4.71p)
(loss) per share (pence)



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 12,205,327 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           At Year ended 31 December 2018
                              2019 30 June 2018                     Audited
                         Unaudited    Unaudited

                             £’000        £’000                       £’000

Secured loan notes             222          203                          72

Financial assets through       440        1,003
profit and loss:                                                        512
UK AIM listed equity
securities

Total financial assets         662        1,206                         584




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       Number of shares  Share  Share Premium
ordinary shares of 0.01p each                             Capital

                                                                £             £

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 2018                         7,087,167  70,872       588,460

Share issue at £0.10 – 05 July 2017             6,363,636  63,636       636,364

Share issue at £0.10 – 04 December 2017           707,937   7,079        84,952

Balance at 31 December 2017                    14,158,740 141,587     1,309,776

Share issue at £0.010 – 21 March 2018             192,308   1,923        23,077

Share issue at £0.010 – 21 March 2018             345,722   3,457        41,487

Share issue at £0.010 – 04 June 2018              500,000   5,000        70,000

Share issue at £0.010 – 15 November 2018           50,000    1000         4,000

Balance at 30 June 2019                        15,246,770 152,467     1,448,340




8.         Events Subsequent to 30 June 2019

On the 9 August 2019 the company raised £365,000 by issuing 365,0000 Bonds a £1 per Bond.

On the 30 August 2019 the company raised £59,000 by issuing 421,429 new shares.

On the 23 September 2019 the company raised £250,000 by issuing 1,666,667 new shares.